Bitcoin fell in price amid new cryptocurrency ban in China

The quotes of the main cryptocurrency -Bitcoin-fell by 6% in 2.5 hours. This happened after Chinese financial institutions were banned from providing services related to digital assets.

In 2.5 hours, the cost of bitcoin fell by 6%, to $ 42.9 thousand, according to CoinGecko. This happened after Chinese financial institutions were banned from providing services related to cryptocurrencies. According to information Reuters .

a related statement was issued by three financial regulators overseeing online financial transactions, the payments market and clearing.

Now financial institutions in China are unable to provide services for the storage and management of cryptocurrency, as well as release products related to digital assets. T

he three regulators said in a joint statement that virtual currencies are “not supported by real value,” their prices are easy to manipulate, and trade contracts are not protected by Chinese law.

In September 2017, the Central Bank of China banned initial offerings of tokens (ICOs) and threatened to revoke licenses to platforms that do so. Now China equates cryptocurrencies with digital goods, which prohibits their use as a payment instrument.