China accounts for two-thirds of Bitcoin mining activities, according to the University of Cambridge.
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Bitcoin and other cryptocurrencies took a shellacking on Monday, as China took further steps to limit their exposure to the banking system.
The People’s Bank of China said it told domestic banks and the Alipay unit of Ant Group not to provide services linked to cryptocurrency trading. The central bank said speculative activities were disrupting China’s financial system and creating the risk of illegal capital outflows.
Major banks immediately announced moves to ban cryptocurrency trading.
China accounts for two-thirds of Bitcoin mining activities, according to the University of Cambridge.
Though off their lows, major cryptocurrencies slumped. Bitcoin fell over 4% to $32,520 and ethereum lost 7% to $1,962, according to CoinDesk.
Bitcoin’s high of the year was $63,381.20, reached on Apr. 15. Environmental concerns as well as Chinese regulatory scrutiny are among the factors weighing on the assets.
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