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Does China plan an even tougher cryptocurrency crackdown?

Regulators warn of risk, sparking talk of stricter regulatory oversight

Bitcoin fell as much as 30% to $30,000 on May 19. Moves by financial regulators in China to tighten rules on cryptocurrencies added to the downward pressure.   © Reuters

Amid the ongoing cryptocurrency rout this week, a joint notice issued Tuesday by three Chinese financial self-regulatory bodies underscored the investment and legal risks involved with trading in virtual currencies, adding to downward pressure on prices.

The three industry organizations -- the National Internet Finance Association of China, the China Banking Association and the Payment & Clearing Association of China -- said a number of actions involving cryptocurrency trading are unlawful. Bitcoin, the largest cryptocurrency, fell as much as 30% to $30,000 Wednesday, hitting its lowest level since the beginning of February.

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