China intensifies crypto crackdown

After the crackdown on bitcoin mining, China’s central bank continued its regulatory crackdown on banks and payment firms, including China Construction Bank, the Agricultural Bank of China and Alipay, requesting them to shut down all cryptocurrency-related trading. “Virtual currency trading activities disrupt the economic and financial order, lead to the risks of illegal cross-border transfer of assets, money laundering and other illegal and criminal activities, and seriously infringe the people’s property safety.” the statement stated, and consequently the banks published announcements, emphasizing that they would not allow the use of its services for crypto-related transactions, leading to a crash of Bitcoin price.

China has been tightening its crackdown on cryptocurrencies. Last month, China’s largest cryptocurrency exchange Huobi began to block Chinese customers from derivatives trading temporarily, and further restricted the leverage of existing users to less than 5x a few days ago. Due to the announcements of several banks on the ban of crypto-related transactions, the P2P market may be affected. As for convenience, some of the P2P transactions required buyers to transfer money to seller in order to exchange for cryptocurrency, but according to the statement, if relevant behaviors are discovered, account transactions will be immediately suspended, and the bank even encourage people to report to relevant departments, thus people who buy or sell cryptocurrencies will be counted as illegal activities.

On the other hand, as Bitcoin’s price fell under China’s FUD, MicroStrategy acquired another 13,005 BTC at an average price of $37,617 per bitcoin, becoming the first publicly-traded enterprise who hodl over 100,000 BTC. According to Coingecko, as of publication, Bitcoin’s price is $31,516, while the average purchase price of Bitcoin by MicroStrategy is $26,080. Even though the current price of Bitcoin has fallen by more than 50% from the peak period, MicroStrategy’s stock price has increased 464%, accompanied by a bull market this year, suggesting that it’s Bitcoin acquisition strategy is profitable.

TideBit is a leading crypto asset exchange supporting fiat currency.