Bitcoin Price Crash Forces China to Announce Another Cryptocurrency Ban

Bitcoin Price Crash Forces China to Announce Another Cryptocurrency Ban

- The Chinese government has clampdown on cryptocurrency again, restricting the use of the crypto for payment

- Agencies of the Asian country said cryptocurrency doesn't have real value as bitcoin crashes, costing investors millions

- The agencies said cryptocurrency is easily manipulated after bitcoin price crash over Elon Musk tweet

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The use of bitcoin and other cryptocurrencies for payment and other financial services have been banned by government agencies in China after the most popular crypto crashed.

The Chinese government had restricted cryptocurrency exchanges from operating in the country 2017, but didn't stop individuals from holding the digital assets. With the recent announcement, investors will have to leave their cryptos in their digital wallet.

According to report by Reuters, the ban was announced by National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China.

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Access Bank acquires another bank, African Banking Corporation

The agencies cited the latest crash in the cryptocurrency market, stating that speculative trading has returned, and this places properties and the country's economy, including financial sector at risk.

Bitcoin Price Crash Forces China to Announce Another Cryptocurrency Ban
Illustration of China and bitcoin. Photo: Budrul Chukrut/SOPA Images/LightRocket
Source: Getty Images

The joint statement released by the agencies said:

"Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order."

They added that there's no real value in the cryptocurrency which has disrupted global financial sector and capital market. China is one of the many countries that haven't supported the digital asset, including Nigeria.

Meanwhile, had earlier reported that Access Bank acquired a creditor in Mozambique. The company acquired African Banking Corporation from Atlas Mara, an investment company.

The Nigerian lender plans to integrate African Banking Corporation into its subsidiary, Access Bank Mozambique. The name of the acquired bank is expected to change.

The worth of the deal is not known, but Access Bank Chief Executive Officer, Herbert Wigwe, said the acquisition will grow his company to the seventh largest bank in Mozambique.


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