Regulatory risks are rising for investors.
What happened
Cryptocurrencies fell on Friday after China furthered its crackdown on the industry. Here’s how some of the most popular cryptoassets were performing as of 3:30 p.m. EDT:
- Bitcoin (CRYPTO:BTC), down 6%
- Ethereum (CRYPTO:ETH), down 8%
- Litecoin (CRYPTO:LTC), down 9%
- XRP (CRYPTO:XRP), down 7%
- Dogecoin (CRYPTO:DOGE), down 7%
So what
Earlier this year, China banned cryptocurrency mining, an energy-intensive process that has drawn criticism from environmentalists for its potential to contribute to climate change. Chinese regulators also forbid the country’s financial institutions from providing services to crypto-focused companies.
Today, China’s central bank took the next step and declared all cryptocurrency-related activities illegal. This includes trading cryptocurrencies and their derivatives on foreign exchanges.
This article originally appeared at The Motley Fool.