C Crypto

Cryptocurrencies Crashed Amid Regulation Concerns

19 May, 2021
Bitcoin mining

Cryptocurrencies remained under heavy pressure this morning with Bitcoin down sliding to its lowest since early February. Regulation concerns have gained traction since the beginning of the week.

China hardens its position

Bloomberg reported People’s Bank of China (PBOC) issued a statement this morning on its WeChat account highlighting that “Virtual currency should not and can not be used in the market as money since it’s not a real currency“.

This statement came after three Chinese state-backed financial associations jointly issued a warning related to the risks stemming from volatile cryptocurrencies. According to the SCMP, “The National Internet Finance Association of China, a state-backed association of Chinese internet firms providing financial services, the China Banking Association on behalf of the country’s banks, as well as the Payment and Clearing Association of China, on Tuesday warned their members to stay clear of any financing activities related to popular cryptocurrencies.

India is studying the possibility of regulating cryptocurrencies

In the meantime, the Indian government wants to study the possibility of regulating cryptocurrencies. According to the Economic Times, a fresh panel of experts “could be to explore the use of blockchain for technological enhancement and suggest ways to regulate cryptos as digital assets instead of a currency.” The article added “The committee may also be asked to study ways to operationalize the Reserve Bank of India’s proposed digital rupee.

More countries seem ready to regulate existing cryptocurrencies in a context where central banks are on track to launch their own digital currencies. As an example, last week, the Bank of Israel said it was preparing an “action plan” for the issuance of a digital shekel.