The regulation scare has seen the cryptocurrency prices tumble down massively. The regulation scare can, therefore, be an important tool in manipulating the market. This was the case with the rumor that the Chinese Central Bank and PBoC were seeking to introduce tougher restrictions against the cryptocurrencies. The Central Bank of China’s email server had been hacked into and circulated emails regarding these regulatory prospects.
Last week saw bitcoin tumble by about 35% due to the fake news that the Chinese government was planning to block access to foreign cryptocurrency exchanges. If this was to be true, the entire cryptocurrency market would have been crippled.
The hoax had claimed that the Central Bank of China was planning stricter regulations against trading in Hong Kong. This invitation was sent from the Central Bank of China’s’ email and so it was to be believed. The email was also sent to the US Media and as expected, it was picked as news and believed to be genuine.
According to email contents, the People’s Bank of China (PBoC) and the Hong Kong Monetary Authority were to introduce antimony laundering regulations in Beijing. This would have extended the country’s hold on all virtual currencies, its related activities and services by individuals and corporations. However, PBoC and the Hong Kong Monetary Authority have since denied sending the email and they don’t have such plans either.
The fake news concerning cryptocurrency regulation is not the first one. Hackers have stolen cryptocurrencies and have also attempted to cripple the entire crypto industry.
Most cryptocurrencies, though affected, have recovered and are now picking up. The Scare had chipped off almost $150 billion from the total crypto market value just in days.