Bitcoin sank to $36,279.11 on Monday after China prohibited multiple accounts related to cryptocurrencies on Weibo, China’s Twitter-like social media network, with a notice stating that each account violates laws and norms. On Sunday midnight, June 6, Bitcoin was trading at $35.946.06.
‘Woman Dr. bitcoin mini’ was one of the crypto pundits or key opinion leaders (KOL) who got blocked. “It’s a Judgment Day for crypto KOL,” she wrote last on Weibo.
According to NYU Law School’s adjunct professor Winston Ma, China’s Supreme Court will likely issue a judicial interpretation linking illegal crypto operations to Chinese criminal law.
These rules are likely, according to Ma, who wrote the book “The Digital War,” since the Chinese government does not want a “Chinese Elon Musk” to exist in the Chinese crypto market. Due to the extreme ambiguity surrounding China’s digital currency rules, Bitcoin has been volatile.
“Uncertainty about China crypto rules remains a headwind,” said Jonathan Cheeseman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX. “So far, it’s been quite piecemeal, focused on mining, new issuance, and retail influencers.” Cheeseman added.
Xinhua, a Chinese news outlet, has also increased its coverage of digital currency. Crypto being a loosely regulated asset, is frequently used for black market trading, money laundering, arms smuggling, gambling, and drug trafficking.
Since the beginning of the year, Bitcoin has been on a tear, skyrocketing to about $65,000 after receiving support from Tesla creator and CEO Elon Musk and a slew of other investors, including Paul Tudor Jones and Stan Druckenmiller. Since then, the digital currency has lost more than $25,000 and is now trading at $36 279.11.