The Chinese central bank is continuing its crackdown on the digital currency market, it was reported on Saturday. In recent times, the Chinese authorities have become increasingly strict against the trade in cryptocurrencies due to concerns about fraud and money laundering, among other things.
In addition, the mining of digital currencies in China is also increasingly restricted because of the high energy consumption that goes with it.
Beijing is concerned about the financial risks associated with cryptos. According to China, cryptocurrencies are often used for black trade, arms smuggling, gambling and drug trafficking. As a result, the government has banned significant banks and payment service providers from trading digital coins and crypto transactions.
China says digital currencies pose a threat to financial stability.
In addition, China is working to counter the mining of digital currencies such as bitcoins. However, the enormous energy consumption is at odds with the sustainable ambitions of China, which is an essential player in the mining of cryptos.