The price of bitcoin and other cryptocurrencies dropped Friday after Chinese authorities called for a crackdown on “mining” and trading.
The Chinese government said in a statement that greater reform and regulation is needed to protect the country’s financial system and economy.
Among the recommendations listed, the authorities 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,” according to a Google translation of the Chinese statement.
The statement was the result of a meeting held earlier Friday by the Financial Stability and Development Committee of the State Council, which was presided over by Vice Premier Liu He, who also serves on the 25-member Politburo of the Communist Party of China.
Bitcoin’s price fell more than 8 percent after the statement was published, according to data from Coinbase. The price of ether, the native currency on the Ethereum blockchain, fell more than 13 percent and the price of dogecoin plunged over 14 percent.
A bitcoin mine site manager seen inside the facility near Kongyuxiang, Sichuan, China.Paul Ratje/For The Washington Post via Getty Images
Bitcoin was the only cryptocurrency mentioned by name in