Published by maria gbaf
Posted on September 27, 2021
2 min readLast updated: February 2, 2026
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Bitcoin fell nearly 5% after China's central bank announced a crackdown on cryptocurrency trading, affecting global markets and related stocks.
By Tom Wilson
LONDON (Reuters) – Bitcoin fell nearly 5% on Friday after China’s central bank said it would crack down on cryptocurrency trading, banning overseas exchanges from providing services to mainland investors.
The largest cryptocurrency was last down 4.6% at $42,874, with smaller coins that typically trade in tandem with bitcoin also tumbling. Ether fell over 8% while XRP slipped 7%.
The People’s Bank of China also said it will bar financial institutions, payment companies and internet firms from facilitating cryptocurrency trading, and will strengthen monitoring of risks from such activities.
“Crypto markets are in an extremely frail state overall, and these sorts of downswings speak to that; there’s a degree of panic in the air,” said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities.
“Crypto continues to exist in a grey area of legality across the board in China.”
Shares in cryptocurrency and blockchain-related firms also came under pressure with U.S. listed miners Riot Blockchain, Marathon Digital and Bit Digital slipping between 4.1% and 5.1% in premarket trading.China-focused SOS slipped 1.2% while crypto exchange Coinbase Global fell 2.7%.
Earlier this year, Chinese authorities said they would crack down on cryptocurrency mining, sparking a massive sell-off of bitcoin and other coins.
(Reporting by Tom Wilson, additional reporting by Sagarika Jaisinghani, editing by Karin Strohecker)
The article discusses China's central bank crackdown on cryptocurrency trading and its impact on Bitcoin and other cryptocurrencies.
Bitcoin fell nearly 5%, with other cryptocurrencies like Ethereum and XRP also experiencing declines.
The People's Bank of China banned overseas exchanges from serving mainland investors and restricted financial institutions from facilitating crypto trading.
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