Dogecoin (DOGE) is down almost 10% as China reports crypto transactions as illegal. According to a report from Bloomberg, the People’s Bank of China (PBOC) issued a statement saying that all crypto transactions and services are illegal in the country. After the announcement, there were harsh movements in cryptocurrencies. For details of the news Cryptocoin. com continue reading e.
DOGE falls hard after Chinese ban
The People’s Bank of China announced that the ban also covers derivatives trading and operating dollars, such as the series of foreign exchange services offered by offshore institutions. After the news, the price of most cryptocurrencies plunged sharply as investors sold in panic. The price of Dogecoin (DOGE) has dropped almost 10%. Here is a chart showing the trend in the price of the coin over the past day:
As you can see in the chart above, Dogecoin’s price was around $0.222 before the announcement, but then dropped sharply to $0.196. At the time of writing, DOGE has recovered a bit and its price has reached the level of $0.207. Still, it’s not clear at this time whether this is for the crash or if the price will drop further.
bad month for DOGE
It’s been a pretty bad month for Dogecoin as the coin has seen a lot of moves that led to over 36% depreciation in a single month period. The chart below shows how the price of DOGE has changed over this period:
During this period, the cryptocurrency lost significant trading volume as it fell to 10th place in terms of market cap.
Tokens of crypto exchanges also got their share from the ban
The price of exchange tokens belonging to crypto exchanges Huobi and OKEx fell after the publication of China’s latest ban notice. In the hour after the People’s Bank of China released its statement on its plan to further tighten the cryptocurrency operating range, the prices of Huobi Token (HT) and OKEx’s OKB token (OKB) fell more than 15%. They are currently the top two tokens with the largest percentage drop in the last 24 hours, according to data from CoinGecko.
China’s tougher measures now target all crypto-related services, meaning any business that allows people to convert fiat currencies into crypto assets will be considered illegal.
Both Huobi and OKEx have strong roots in China and were founded in that country many years ago. Although they claim to have moved from China and suspended the Chinese Yuan fiat on the ramp, they still have employees based in the country and serve Chinese customers. This allows them to trade Renminbi for crypto assets through traders on their over-the-counter platform (OTC).
Binance also offers Chinese Yuan OTC services on its platform. However, the price of Binance’s exchange token BNB has been less hit, down nearly 8% in the past hour. Exchanges did not respond to The Block’s request for comment on whether they had any reaction to China’s renewed crackdown.