Bitcoin Markets Slide Due To China Stepping Regulatory Scrutiny
On 9 February, the markets for the bitcoin and other digital currencies dipped for more than 7% that follows the news that the regulatory pressure is tightened by the People’s Bank of China, the central bank of the country.
On Wednesday, the PBoC meet with the major Bitcoin exchanges for pushing the full compliance with the rules of the anti-money laundering. The price of Bitcoins drops from $1,063 to nearly $988 as details given by the CoinDesk before recovering to nearly $1,000 by Sunday.
The two of the largest BTC exchanges in China temporarily halts the withdrawal of bitcoin and another currency, Litecoin after the meetings. The withdrawal of the Yuan is not affected by the move and companies say that it would last only one month. At the same time, they will increase the protections against the illegal activities such as money laundering. New trading fees will be instituted by a half dozen Chinese bitcoin exchanges.
A big portion of the overall market for the cryptocurrency has been made by the Chinese exchanges and its influences have been a consistent cause of anxiety in the market.
The last loss in the bitcoin’s price was driven by the Chinese regulation that consists of a decision of banning banks from handling the bitcoins as currency in 2013. A lot of price surges that have been caused by the domestic Chinese trends such as a 2015 craze for a bitcoin-fueled Russian pyramid scheme.
The market of cryptocurrency may dampen briefly after the increased oversight of PBoC. It could also result in the long term stability in a great way. The latest regulatory pressure on Bitcoin from PBoC looked to drive by the government in China’s desire for controlling the capital outflows from the country as per the Bloomberg.