The cyrptocurency market has plummetted again after China commented on digital coins for a second time this week. The market has been in freefall several times this week amid damning comments from SpaceX founder Elon Musk about the environmental impact of digital coin mining and after Chinese authorities threatened to crack down in mining of cryptocurrencies.
Bitcoin is facing one of its most severe price crashes in its history this week, despite a stabilising effect taking force across the wider crypto market.
The price of the digital coin crashed on Wednesday after China announced new measures to block cryptocurrencies from being used as payment in the country.
The ban would see financial institutions and payment companies unable to offer clients any service involving digital coins, including trading, clearing and settlement.
The statement issued from three industry bodies read: “Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
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The threat came as a Government report was published in Hong Kong, within which cryptocurrency exchanges were outlined as likely to have to be licensed by market regulators.
The report suggests only professional investors ought to be able to use them.
Dozens of cryptocurrency exchanges currently operate in Hong Kong, including some of the world’s largest.
The city has an “opt-in” approach which means exchanges can apply to be licenced by markets watchdog the Securities and Futures Commission but they do not have to.
