The fact that China has decided to limit the activity of financial and payment institutions and their participation in trade and services in cryptocurrencies may have undesirable consequences for the country.
After Monday's incident in Sichuan Province, where Bitcoin hash rate lost up to 20% due to a power outage, China has prepared another inconvenience, namely a ban for financial, payment institutions from cryptocurrency business.
According to Reuters, China mentioned in a statement recent changes in the crypto markets, which seriously disrupted the security of people's property and also disrupted the normal economic and financial order.
The fact that this ban will have a negative impact on the development of cryptocurrency prices these days was expected, but surprisingly, China was criticized for this decision, including by the WEC.
Sheila Warren, Deputy Head of the Center for the Four Industrial Revolution at WEF, sent a written statement to Trustnodes:
We fully expect bitcoin’s price to remain volatile, as it tends to be hyper-responsive to even the hint of regulation. That being said, China’s move doesn’t necessarily presage similar crackdowns in other jurisdictions, and this move is likely to affect Chinese business innovation, which has already been slow because of the concern about regulatory action, more than consumer activity.
Given that the WEF is an organization that brings together business, political, academic and other leaders of society, a statement of this kind is a big positive for the blockchain and crypto industry.