Local experts respond to China outlawing cryptocurrency

Local News

A visual representation of the digital Cryptocurrency, Bitcoin. (Photo by Dan Kitwood/Getty Images)

YOUNGSTOWN, Ohio (WKBN) – Friday, China’s central bank declared all transactions involving cryptocurrencies to be illegal. Some local experts have elaborated on how this can affect cryptocurrency buyers in the U.S.

“China’s crypto decisions could affect the prices of cryptocurrency globally as they remove themselves from the market by causing them to drop, but not in the long term,” Brian Edwards, Chief Operating Officer of FAAM Coin, said in a statement sent to First News.

FAAM Coin is a cryptocurrency started by a group of men from the Youngstown area. Since its founding, the men travel and educate others on the value of cryptocurrency and how to use it.

Chinese banks were banned from handling cryptocurrencies in 2013, but now it is being outlawed.

Edwards says it is legal in the U.S. but in the process of being regulated.

“Currently, the United States Government is looking for ways to regulate cryptocurrency and incorporate it into financial systems already in place, while China is looking to push cryptocurrency out in an effort to create their own digital currency. The SEC (Securities and Exchange Commission) and Homeland Security have been looking for ways to partner with different exchanges so that tax information is reported to them the same way that stock exchanges work,” Edwards said.

After China’s declaration Friday, the price of Bitcoin fell more than 9%, to $41,085, in the hours after the announcement, as did most other crypto tokens. Ethereum skidded almost 10%, falling from $3,100 to around $2,800.

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