China’s third largest bank introduces complete crypto ban

June 24, 2021


introduces complete crypto ban

Bitcoin has not yet been able to recover from the news of China's rigorous crackdown on Bitcoin miners. But the Far East is already delivering the second stab in the back to the number one cryptocurrency: it has now been revealed that one of China's largest state-owned banks has banned its customers from dealing in digital assets.

According to reports, the "Agricultural Bank of China" has published a statement in which customers are banned from any business with cryptocurrencies. The bank writes unequivocally: If customers interact with cryptocurrencies such as Bitcoin or other digital assets and the bank finds out, the account will be terminated immediately. "Suspicious transactions" will also be reported to the authorities in a timely manner.

China and Bitcoin - one could almost speak of a love-hate relationship. Hardly any other nation is mentioned so often in connection with Bitcoin. Every year, China is present with the corresponding headlines. Usually it is about bans, restrictions or other FUD (Fear, Uncertainty & Doubt).

China and Bitcoin

Just recently, numerous BTC miners in Sichuan had to shut down operations after authorities in the southwestern Chinese province ordered a halt to crypto mining. According to a report in the Communist Party-backed Global Times newspaper, more than 90% of China's bitcoin mining capacity has already been shut down. Mining bans have also previously occurred in other regions of the country, such as Inner Mongolia and Yunnan. Bitcoin's hash rate also fell sharply last month as a result, data from blockchain.com shows.

It is quite possible that China is stepping up its anti-crypto push because of the digital yuan, which is currently being worked on vigorously. The Agricultural Bank of China is also said to be involved in its development. A ban on the "competitor" seems obvious.

Graphic cards are getting cheaper again

The reports about China's crackdown at least have a positive side effect for Bitcoin miners outside the country: Demand for graphics cards is declining, and they are also becoming cheaper again. Previously, major manufacturers had complained about supply bottlenecks - and gamers and home miners about horrendous prices.

cryptocurrencies caused

The continuing success of cryptocurrencies caused a boom in graphics cards. Many models were sold out for months. The demand was so enormous that graphics card manufacturer Nvidia, for example, felt compelled to modify its products so that they could only be used for crypto-mining to a limited extent.

As the South China Morning Post now reports, the cost of GPUs has fallen by up to two thirds. This means that prices have returned to the level before the outbreak of the Corona pandemic. During the pandemic, cards were in short supply, partly because there was increased demand due to increased home office activity.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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