China’s State Council Financial Stability and Development Committee announced at a working conference on May 21 it will tighten control of financial risk and crack down on Bitcoin transactions and mining.
Besides transactions, Bitcoin mining is the main way of getting Bitcoins. Bitcoin miners, who consume an enormous amount of chip resources and electricity, must collect and package the unconfirmed transaction data within a certain time. Whoever does the packaging first can earn a Bitcoin bonus.
On May 18, China’s financial authorities issued a joint statement on preventing risk brought about by virtual currency transactions, banning any institution or body from launching a business related to virtual currencies.
Influenced by the statement and the Commission’s latest decision, the value of one Bitcoin plunged to about US$37,000 on May 22, according to website Coindesk.
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