China bans cryptocurrencies. Misinformation or truth?
Three self-regulating Chinese organizations have signed a resolution about banning crypto business.
The agreement mentions China National Internet Finance Association (NIFA), China Banking Association (CBA) and China Payment and Clearing Association (PCAC). All three organizations are non-regulatory and are controlled by the People’s Bank of China (PBoC) and the China Securities Regulatory Commission (CSRC).
The NIFA, CBA and PCAC signed an agreement according to which members of their organizations should not participate in the crypto business and provide services related to cryptocurrency companies. Nevertheless, the storage of cryptocurrencies by individuals in China is not prohibited!
It is interesting that seemingly ordinary news was picked up by almost all media and social networks. The loud headlines “China Bans Bitcoin” only added panic to the market, and the illiterate analysis of the news by many publications and channels only exacerbated the situation.
We’ve seen similar headlines on a regular basis for 5 years, and each time they have a significant impact on the price. It is interesting to observe how small traders, without understanding the very essence of the news, sell their assets in a panic and flee the market.
Moreover, the news about Binance’s problems with US regulators has gone unnoticed, no one is discussing the fact that an EU member of parliament has spoken out against Bitcoin’s environmental harm. But only China remains at the center of the news stream, which is just preparing to launch the CBDC. On April 1, China completed its first cross-border digital yuan pilot project with Hong Kong.
The cryptocurrency market is circular and it looks like “scary” repeated news is also circular. Why not? After all, the bulk of people are led to them every time.