- China’s legal authorities are studying how to handle crypto-related cases while enforcing the national ban on trading and mining.
- A market sell-off wiped out over $1 billion in liquidations, with Bitcoin and Ethereum experiencing the biggest losses.
Chinese supreme legal bodies are increasing their efforts to study legal issues concerning cryptocurrency-related legal cases. In a recent case in Beijing, representatives of the Supreme People’s Court, regulatory bodies, and academic circles held a seminar last Sunday in an attempt to establish the legal position on cryptocurrencies.
Yang Dong, a law professor at Renmin University of China, is leading a research project for handling crypto assets tied to legal cases. He explained that such cases usually include national financial security issues and may facilitate enhancing the Chinese regulation model. This is especially relevant to judicial and regulatory bodies so that effective and practical solutions in dealing with legal issues in cryptocurrency can be addressed.
China Maintains Strict Stance on Crypto Trading
China has reiterated its crackdown on cryptocurrency trading and mining, which began in September 2021. China’s central bank and other financial regulators banned all cryptocurrency transactions on the country’s mainland, continuing the crackdown on digital assets.
However, this has not limited Hong Kong since the city has embraced crypto companies and provided the digital asset market with more regulation. At the same time, China’s central bank continues to strengthen the regulation of global crypto assets as set out in its financial stability roadmap.
Market Liquidations Shake Crypto Industry
The cryptocurrency market is still highly volatile, and at least $1 billion was wiped out by the liquidation of leading digital assets. BTC’s total margin trading liquidations stood at $323 million, ETH’s at $73.42 million, and Sol’s at $25.72 million. Fluctuations in Bitcoin’s price led to the unwinding of these positions in futures markets, squeezed traders, and losses from leveraged positions.
According to Coinglass, altcoins have been significantly hit by the selling pressure, with XRP and DOGE experiencing $19.10m and $11.42m in liquidations, respectively. High leverage levels were also to blame for the speed of the market’s collapse since forced selling magnified the downturn.
Global macroeconomic factors and emerging regulatory issues have continued to contribute to increased investor unrest. The Fear and Greed Index has notably declined to worry traders since it indicates high levels of fear. Yet, if Bitcoin returns to the key resistance levels, a short-term bounce back is possible. However, such selling pressure might extend and cause more swings that could bring the price down to a crucial $80,000 support level.
Balaji Srinivasan, an influential personality on X, emphasized that the Chinese dominate both military and consumer drones and the manufacturing of ships and trains. These developments may affect the cryptocurrency markets by creating demand for products using blockchain tech in logistics and technology industries. As we reported, Deutsche Bank has warned that China’s advancement in technology is a turning point in the battle for global dominance that can be likened to the Soviet Union’s Sputnik launch.
