China’s Global Crypto Share Plummets After Crackdowns
According to the People’s Bank of China (PBoc), China’s global cryptocurrency trading volume has plunged to just 10% of the global total, down from 90% in 2021.
The notable decline is due to the country’s harsh restrictions on cryptocurrency trading and mining. China banned bitcoin trading in 2013 and prohibited cryptocurrency exchanges in 2017. Mining activities have also been progressively targeted over the years, with the government citing environmental concerns.
“We have effectively curbed the hype of domestic virtual currency transactions,” China’s central bank announced at its annual meeting, which lays out the regulatory priorities for the country’s financial markets in the coming year.
The PBoC also termed cryptocurrencies, P2P lending platforms, and unlicensed providers of digital assers as “internet financial chaos”.
“All P2P online lending platforms have withdrawn from operations, and the outstanding loan balance has dropped from the initial 1.2 trillion yuan ($190 billion) to 490 billion yuan”, the bank noted.
In a previous article, Bread News outlined China’s unique approach to blockchain technology.