Bitcoin and other cryptocurrencies suffered a scrap on Monday as China took further steps to limit its exposure to the banking system.
People’s Bank of China said it had directed domestic banks and Ant Group’s Alipay unit not to offer any services related to cryptocurrency trading. The central bank said speculative activity disrupted China’s financial system and created the risk of illegal capital outflows.
Large banks immediately announced steps to ban trading in cryptocurrencies.
China accounts for two-thirds of Bitcoin mining activity, according to the University of Cambridge.
Despite the major cryptocurrencies hitting their lows, they plummeted. Bitcoin fell over 4% to $ 32,520 and Ethereum lost 7% to $ 1,962, according to CoinDesk.
Bitcoin’s high for the year was $ 63,381.20 and was hit on April 15th. Environmental concerns as well as Chinese regulators are among the factors weighing on the assets.