Published On: Mon, Sep 11th, 2017

Bitcoin price PLUNGES as China ‘prepares cryptocurrency crackdown’


The digital currency is now sitting at around $4,175 and has shed some $800 since the start of the month when the price came within touching distance of $5,000.

Speculation is rife the Chinese government is launching a crackdown on exchanges, prompting traders to sell off the cryptocurrency.

And it comes after China decided to ban initial coin offerings, which are used to raise funds with new digital tokens.

The two moves signal a marked hostility towards bitcoin and cryptocurrency in the world’s second largest economy.

Other countries have also moved to regulate the market.

Australia recently introduced new measures targeting criminal use of the cryptocurrency and strengthened the Anti-Money Laundering And Counter Terrorism Financing Act.

Minister for Justice Michael Keenan said: “Stopping the movement of money to criminals and terrorists is a vital part of our national security defences and we expect regulated businesses in Australia to comply with our comprehensive regime.

“The threat of serious financial crime is constantly evolving, as new technologies emerge and criminals seek to nefariously exploit them.

“These measures ensure there is nowhere for criminals to hide.”

The latest move by China is now another tightening of the market. 

Charles Hayter, chief executive and founder of digital currency comparison website Crypto Compare, told CNBC: “The Chinese market has been perhaps the most virulently exuberant in terms of its irrational excesses and across the world regulators are looking to gradually turn up the regulatory heat on this ICO phenomenon.”

However, the adoption of bitcoin by a number of celebrities has helped the cryptocurrency into the mainstream.

Underwear entrepreneur Michelle Mone last week announced the launch of £250million luxury property development in Dubai, priced in bitcoin.



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