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China criticizes bitcoin

The official news agency of the Chinese government “Xinhua”, with the beginning of the new week, released a publication entitled “Urgently eliminate the excitement and chaos around the virtual currency.” She became a continuation of the statement by the State Council of the People’s Republic of China, which on Friday called Bitcoin mining and trading financial risks.

In the publication, the news agency recalls a report from three self-regulatory associations that pointed to the risks of cryptocurrency transactions.

 

“Illegal and speculative bitcoin transactions or the illegal issuance of tokens can cause large losses for investors on the one hand and affect the financial stability of the state and order in society on the other,” writes Xinhua. “The chaos in the virtual currency market must be stopped.”

 

The authors of the publication also name four “major risks” associated with trading and using virtual currencies: market, transactional, technological and legal.

 

“In response to various risks and legal problems arising in the process of transferring and speculating in bitcoin and other virtual currencies, measures were previously launched in our country to eliminate them. However, many investors ignore the risk warnings. Several payment institutions and field leaders provide support for the mining and trading of virtual currencies such as Bitcoin. The Finance Committee has raised the relevant requirements to the state level, ”the agency writes.

 

In addition, the publication states that bitcoin “is not and will not become a currency”, investors should not take part in trading it, and financial and payment institutions should support such activity. The department also mentions further steps to prevent the described offenses, including “strengthening the fight against mining and trade, maintaining normal economic and financial order and creating better conditions for the launch of the digital yuan.” Xinhua also warns of liability for companies that continue to work with participants in the cryptocurrency industry in violation of the law. The response to their actions will become “timely” and the costs of claims settlement will rise.

Earlier it became known that the Huobi exchange restricts the access of Chinese users to some of its services. OKEx also said it will stop trading its own OKB token in the Chinese peer-to-peer segment. Both exchanges left China after the 2017 ban, but still serve a sizable user base among local traders and miners.

 

“At present, there is no definite information other than the statement of the State Council. Due to this uncertainty, any small news and even rumors can cause volatility in the market. It is highly likely that this chaos will persist over the next week or even month, ”writes journalist Colin Wu.

 

Bitcoin is trading around the $ 35,000 mark today.

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