In a statement, the People’s Bank of China said transactions involving virtual currencies such as Bitcoin, Ether and Tether were forbidden, erasing the previous two days’ gains for the most valuable cryptocurrency. (The Logic)
Talking point: China has been tightening its grip over a number of industries in recent months, including the cryptocurrency sector. Earlier this year, Beijing cracked down on Bitcoin miners, prompting many to flee the country (with some reportedly setting up shop in Alberta). Meanwhile, U.S. regulators are also seeking to ramp up oversight of the crypto marketplace. Fearing a potential bank run at some crypto firms, the U.S. Treasury Department is reportedly working on rules to govern the use of stablecoins, many of which are backed by U.S. dollars held in bank accounts. The SEC has also increased its scrutiny of other areas of the crypto market in recent weeks: the agency threatened to sue Coinbase over its planned lending product and is said to be investigating Uniswap Labs, the company behind one of the most popular decentralized exchanges.
