The cryptocurrency market turned around on Saturday, a day after China’s central bank’s crackdown on illegal financial activities from overseas cryptocurrency exchanges, with market cap gains 3.3 percent to reach $1.99 trillion as of 1345 hours GMT.
The price of bitcoin (BTC), the largest cryptocurrency, gained 1.75 percent to reach $42,577. With this increase in price, the market capitalisation of the biggest cryptocurrency has reached $801.7 billion.
Likewise, ether (ETH) price went up by 1.91 percent to reach $2,911. With this increase in price, the market capitalisation of ETH has reached $341.5 billion.
Similarly, XRP price gained 2.39 percent to reach $0.941. The market capitalisation of XRP stands at $94 billion after this increase.
Following suit, cardano (ADA) price gained 7.56 percent to reach $2.38. Its market capitalisation has reached $77 billion after this increase.
In the same way dogecoin (Doge) price gained 1.31 percent to reach $0.208. With this increase in price, the market capitalisation of doge has improved to $27.3 billion.
The announcement by People’s Bank of China (PBoC) of crackdown on illegal financial activities from overseas cryptocurrency exchanges marks its strongest move against cryptocurrency mining and trading to date. The PBoC has announced a complete ban on cryptocurrency trading. PBoC has banned overseas exchanges from catering to Mainland China residents online. Financial institutions, payment firms and related companies are barred from facilitating online crypto trading.
The PBoC considers all cryptocurrency-related transactions illegal based on information on their website. The bank has cited concerns around the disruption in economic and financial order, criminal activities like gambling, illegal fund-raising, money laundering and pyramid schemes as the primary cause for the crypto trading ban. The central bank’s concern is that cryptocurrency-related activities endanger national security and social stability.
The PBoC’s plan of action includes collaborating with several government-run agencies to issue, supervise and guide a unified deployment of the crypto ban. The central bank has identified local financial authorities as the lead in implementing the ban in their provinces.