The cryptocurrency market is now admittedly global and the regulatory frameworks in different countries have a significant impact. It goes without saying that Chine is perhaps the most important market in the world for most industries and it is certainly one of the most important for the crypto space.
However, the sector was rocked this week after it emerged that China had decided to ban financial institutions and payment companies from providing cryptocurrency-related services in any shape or form.
That is a massive blow for the crypto space since it is going to wipe off the influx of capital from one of the world’s biggest economies. In addition to that, such a move can also lead to panic and selloff and that is exactly what happened in the markets over the past couple of days. The price of some of the major cryptocurrencies like Bitcoin and Ethereum crashed considerably.