Bitcoin has seen a huge decline as the price of Bitcoin tumbled 10% on Monday. The decline comes after China has increased its crackdown on cryptocurrencies. It has told banks and payments platforms to halt backing digital currency transactions. The central bank of China, the People’s Bank of China (PBOC), disclosed that it had recently called several major banks and payments firms to warn them to take strict action over the trading of cryptocurrencies.
PBOC disclosed in a statement that Banks were warned to not offer products or services such as trading. They also told them to settle all cryptocurrency transactions. Moreover, China’s third-largest lender by assets, the Agricultural Bank of China, disclosed that it was adopting the guidance of PBOC and would perform due diligence on customers to eliminate unlawful activities relating to cryptocurrency mining and transactions.
Furthermore, the Postal Saving Bank of China has also disclosed that it would not expedite any cryptocurrency transactions. Chinese mobile and online payments platform Alipay revealed it would establish a surveillance system to identify unlawful cryptocurrency transactions. Alipay is retained by financial technology giant Ant Group.
Additionally, the State Council revealed that it would clamp down on cryptocurrency mining and trading as part of a campaign to control financial risks. Other cryptocurrencies also decline as investors concerned about the tighter regulation of digital currencies around the globe.