Bitcoin tumbles after China says to crack down on mining, trading activities

Bitcoin tumbles after China says to crack down on mining, trading activities
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NEW YORK/LONDON (May 21): Bitcoin dropped on Friday after China's Vice Premier Liu He said his government will crack down on the virtual currency's mining and trading activities.

The world's largest and most popular cryptocurrency last traded down more than 6% at US$38,293 after holding the US$40,000 level for most of the Asian and London sessions.

China's Financial Stability and Development Committee, which is chaired by Liu, said on Friday it will resolutely prevent and control financial risks, and singled out Bitcoin as the asset it needs to regulate more.

His remarks came days after China banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading, according to three industry bodies.

Rival cryptocurrency Ether also came under pressure, falling 8.4% to US$2,533.