China’s role in the 2021 cryptocurrency crash
While Tesla chief executive Elon Musk's tweets are one of the reasons for this price dip, another major reason is China's massive crackdown on the digital coin and cryptocurrencies in general.
The country has always had a firm stance against cryptocurrencies. Back in 2013, China’s central bank had barred financial institutions from handling Bitcoin transactions when the price of the digital coin jumped from $100 to $1,000 within a few months. It had also b
However, the government has intensified its crackdown on cryptocurrencies in recent months, looking to put an end to even their mining and trading.
In May, Chinese Vice Premier Liu He and the State Council issued a warning saying it was necessary to “crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field”.
This was after three Chinese state-backed financial associations raised concerns about risks em ..
fundraising through initial coin offerings and shuttered domestic Bitcoin exchanges in 2017.