The Financial Times (FT) of the UK said on the 19th (local time) that the cryptocurrency collapsed as the fear that the regulatory authorities of each country would follow China to strengthen the relevant regulations increased when the Chinese authorities declared another crackdown on cryptocurrency (virtual currency). ) Reported.
The People’s Bank, the central bank of China, warned on Weibo on the 18th that “cryptocurrency is not used in real life at all”, and institutional organizations such as China’s Bank Federation issued a statement at once and launched a campaign to ban cryptocurrency transactions such as bitcoin. have.
In particular, the People’s Bank warned that it would be punished if it was found that it was illegal to trade cryptocurrencies as well as derivatives.
The reason why China has strengthened its crackdown on cryptocurrencies again is attributed to the recent fluctuations in the cryptocurrency market. As Elon Musk, Tesla’s CEO, suddenly withdrew his support for Bitcoin, the cryptocurrency market is greatly shaken.
In addition to the purpose of warning the instability of the cryptocurrency market, the People’s Bank seems to feel that there is a need to strengthen the crackdown on the illegal cryptocurrency market ahead of the official issuance of the’digital yuan’ issued by the People’s Bank (CBDC).
China will officially issue digital yuan in time for the 2022 Winter Olympics.
In fact, the warning from China’s central bank is nothing new. This is because China has steadily cracked down on cryptocurrencies. China is taking tough measures, such as closing cryptocurrency exchanges in 2017.
However, FT analyzed that the news of China’s strengthening cryptocurrency crackdown had an impact on the market situation because there were fears that regulators from other countries would also tighten regulations.
As institutional investors in the United States such as Goldman Sachs enter the cryptocurrency market one after another, such as providing cryptocurrency-related products to consumers, the U.S. regulators are also making a move to strengthen related regulations to protect consumers.
Not only the United States, but also the European Central Bank (ECB), a regulatory authority in Europe, recently evaluated in a’Financial Safety Report’ that “Cryptocurrency is the main culprit of global warming because it consumes a lot of electricity, but has not yet penetrated much into Europe.” They are paying close attention to money. The ECB added that the cryptocurrency craze is similar to the 17th-century tulip craze.
As even institutional investors enter the cryptocurrency market one after another, regulatory authorities in each country are strengthening the surveillance of cryptocurrency, and the more institutional investors enter the market, the stronger the surveillance of the market by each country’s regulatory authority inevitably. .
FT analyzed that cryptocurrencies such as bitcoin collapsed on the same day, fearing that other countries such as China will tighten regulations related to cryptocurrency.
