Worries about a regulatory crackdown
China has long played an outsized role in the world of cryptocurrencies. Whether formerly acting as one of the central hubs of digital currency mining , thanks to massive operations capitalizing on cheap electricity , or as a primary market for cryptocurrencies of all kind, the country has contributed significantly to the growth of digital currencies as an industry over the last several years. Now, as cryptocurrencies have fallen overall in the past six months or so, analysts are beginning to attribute some of the decline to China as well.
How does the situation in China impact the cryptocurrency market throughout the rest of the world? There are relatively straightforward explanations for this: Chinese regulators issued a complete ban on trading in February of this year. At that point, the People's Bank of China PBOC , acting as central regulatory authority for the country, announced that it would " block access to all domestic and foreign cryptocurrency exchanges and ICO websites.
The report indicates that "experts in China fear[ed] losing control over the rapidly emerging cryptocurrency market" as it gained volatility toward the end of Now, the PBOC has confirmed that it allowed for a zero-risk exit for close to 90 digital currency exchanges and almost as many ICO trading platforms since September. Indeed, China was one of the first nations to take dramatic action to ramp up regulation of the cryptocurrency world. As of this point, it remains one of the most extreme countries in terms of the severity of its regulatory action.
But, although many other countries, the U. It's also important to consider the role that the Chinese market may have had on the digital currency space in between September and February , when the ban took place.
CryptoDaily suggests that increased interest among Chinese investors during this time may have "encouraged the price of bitcoin to skyrocket. With so much interest among the Chinese investor population, it may have been that the authorities grew concerned about bitcoin potentially challenging the yuan.
The response? Implement a ban in order to tamp down interest and restore the earlier status quo. There is likely much more to the story of China's role in cryptocurrency markets than this. The former would likely suggest a much more dramatic role for the Chinese investor base in the global bitcoin market than the latter.
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Bitcoin BTC trading volumes in Venezuela have reached a new all-time high amidst massive hyperinflation and an ongoing presidential crisis, tech news outlet TrustNodes reports Feb.
Source: Coin. The recorded trade volumes on LocalBitcoins are just a fraction of overall estimated Bitcoin trading by Venezuelans. As TrustNodes reports, a large amount of trading is taking place on centralized exchanges located in neighboring countries, such as Colombia and Brazil. In such cases, the total value of Bitcoin trading volumes by Venezuelans is difficult to estimate since trades are often made in local currencies of the neighboring countries.
During the first five weeks ofVenezuela has reportedly seen transactions, while Colombia saw transactions. According to TrustNodes, the trading volume on LocalBitcoins in Venezuela has seen an over four-fold increase since summerwhile the inflation of the local fiat currency, the Venezuelan bolivar, has reached one million percent.
As the International Monetary Fund IMF predicted earlier inthe inflation rate in Venezuela could potentially reach ten million percent this year. Last month, the U. As Cointelegraph reported earlier this month, Juan Guaido is currently the self-proclaimed president of the country, and is supported by many local and international leaders.
On Jan. What caused collapse in bitcoin trading volumes bill also lists required licenses for mining and crypto exchanges businesses, and introduces fines for unlicensed activities. No matching results for ''. Tip: Try a valid symbol or a specific company name for relevant results.
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