Bitcoin falls after China calls for crackdown on bitcoin mining and trading behavior

Bitcoin falls after China calls for crackdown on bitcoin mining and trading behavior

Bitcoin's price tumbled Friday following an intensified call from Chinese authorities to crack down on mining and trading of the cryptocurrency. In a statement from Chinese Vice Premier Liu He and the State Council, authorities said tighter regulation is needed to protect the financial system. The statement, released late Friday in China time, said it is necessary to "crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field." Bitcoin's price on Coin Metrics slid more than 6% as news of the statement circulated, part of a broader plunge that has seen the digital currency tumble more than 40% from its peak. China's tough talk comes just a day after on those using bitcoin to conduct "illegal activity broadly including tax evasion." The Treasury Department said it will require reporting on crypto transfers of more than $10,000, just as with cash. Concerns in China centered on a number of issues. "It is necessary to maintain the smooth operation of the stock, debt, and foreign exchange markets, severely crack down on illegal securities activities, and severely punish illegal financial activities," the statement said.