© Reuters. The selloff in Bitcoin intensified on Wednesday

Investing.com – The selloff in Bitcoin continued unabated as sentiment turned bearish in the wake of a statement from The National Internet Finance Association of China (NIFA), claiming that “financial and social risks [of bitcoin exchanges] cannot be ignored.”

On the U.S.-based Bitfinex exchange, fell to $3843, down $305.3 or 7.36%, well below its recent peak of $4,969. At current prices Bitcoin has a market cap of $64.09 billion.

The National Internet Finance Association of China, a self-regulatory agency, established by the People’s Bank of China, said that Bitcoin “is becoming a tool for money laundering” and warned that virtual currency trading platforms in China are not legally established.

Chinese regulators, however, are yet to confirmed any plan to shut down local exchanges but the statement from NIFA supports recent media reports warning that the decision to shutter local exchanges had already been made.

“China’s central bank, working with other regulators, has drafted instructions banning Chinese platforms from providing virtual currency trading services”, the Wall Journal said Monday, citing people familiar with the matter.

The latest crackdown on cryptocurrency activity in China comes a week after the People’s Bank of China (PboC) sent shockwaves through the cryptocurrency market, imposing a ban on individuals and businesses from raising funds through initial coin offerings (ICOs).

The string of recent measures proposed by China to curb the use of cryptocurrencies has unsettled investors as strong demand from Far East has been a key factor supporting cryptocurrency growth.

The string of recent measures proposed by China to curb the use of cryptocurrencies has unsettled investors as strong demand from Far East has been a key factor supporting cryptocurrency growth.

fell $34, or 6.39%, to $498, while fell 9.11% to $268.33.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read more

There are currently no comments.