China's crackdown on cryptocurrencies is "likely to affect" its business innovation, the Guardian reports, citing Sheila Warren, Deputy Head of the World Economic Forum’s C4IR [Centre For the Fourth Industrial Revolution]. However, Warren noted the centre expects bitcoin’s (EXANTE: Bitcoin) price to remain volatile, as "it tends to be hyper-responsive to even the hint of regulation."
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"That being said, China's move does not necessarily presage similar crackdowns in other jurisdictions, and this move is likely to affect Chinese business innovation, which has already been slow because of the concern about regulatory action, more than consumer activity," she said.
Warren's comments came after China prohibited its banks from offering any services to cryptocurrency-related clients. According to a joint statement from the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China, banks and online payments channels are now prohibited from offering clients any service involving cryptocurrency.
Shortly after the announcement, bitcoin's price quickly dropped to $28,000, losing over 20% in a day. However, later the cryptocurrency returned to the $40,000 mark.
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