Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Shares Of Blockchain-Linked Firms Tumble As China Calls Cryptos Illegal Again

Published 24/09/2021, 14:42
Updated 24/09/2021, 14:42
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com – Shares of blockchain- and crypto-related companies were taking a beating Friday as authorities in China vowed a strict crackdown against digital currencies.

Crypto exchange Coinbase (NASDAQ:COIN) fell 4% on Nasdaq. Marathon Digital (NASDAQ:MARA), Bit Digital (NASDAQ:BTBT), Hut 8 Mining (TSX:HUT_t) and Riot Blockchain Inc (NASDAQ:RIOT) fell 7% to 8% in premarket trading.

MicroStrategy (NASDAQ:MSTR), one of the biggest Bitcoin investors among listed companies, fell 6%. Argo Blockchain (LON:ARB) dropped 13% in London trading.

The warnings led to a slump in the value of Bitcoin (BitfinexUSD) and other digital currencies as well. The largest cryptocurrency slumped below the  $41,000-level and then recouped it. Ethereum ETH/USD fell 19% and Dogecoin DOGE/USD 16%.

People’s Bank of China reiterated its long-held view that all digital currency activities are illegal while pledging to crack down on the market.

“Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies,” according to a translation of comments the central bank posted as a Q&A on its website.

The PBOC also advised banks and payment institutions like Ant Group Co Ltd (HK:6688) against providing crypto-linked services.

It’s not the first time China has talked tough on cryptocurrencies. Beijing cracked down on cryptos earlier in June, forcing many mining bases to shut. Before that, China accounted for more than half of global Bitcoin mining production.

 

 

 

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.