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CCTV Script 05/09/17

— This is the script of CNBC's news report for China's CCTV on September 5, Tuesday.

Following China's announcement to strengthen cryptocurrency regulations, major cryptocurrencies fell on Monday. Bitcoin fell by nearly 9%, diminishing all its gains this month. Its two-day consecutive decline went over $700. Similarly, Litecoin also erased its gains in this month, with the lowest point on Monday being at $64, down by about 18%. Ethereum also erased the gains that it had this month. Some smaller cryptocurrency experience a bigger fall. Hcash fell by 57%, while Qtum fell by nearly 29%.

According to Coindesk, cryptocurrencies market experienced its biggest sell-off since mid-July this year. The overall market value fell to $152 billion US dollars. It shrank $28billion from its historical high.

China's supervision arrived at a time where cryptocurrencies have had a crazy increase in August. In August, most cryptocurrencies were in a soaring frenzy. Bitcoin rose by nearly 60% a month. Litecoin increased by more 45%. Ethereum was up by more than 88%. In August, also, Bitcoin reached $4000. By September, it increased to a new record high of $4700. As result, speculators who used cryptocurrency for money laundering or capital flight have prompted governments to start regulating.

[FRANK TROISE, Managing Member, Soho Capital] "I think the regulators right now are in a bit of a jam because they are late to the game. With the ICO highlighted in the prior segments, I have issue with this being categorized as an asset class. The only reason why we are even hearing about record high… this is the only thing that actually has any volatility to it."

In addition to China, many countries have recently strengthened their regulation in this area. The South Korean Financial Services Committee said on Wednesday that one should be wary of the risk and volatility of excessive cryptocurrency trading. Therefore, it is necessary for government to strengthen its regulations to prevent illegal transactions and pure speculation.

According to South Korea's latest digital currency regulations, banks must conduct a rigorous review of personnels engaged in digital currency transactions. If suspicious activities are found in a bank account, the financial institution must promptly report to the regulatory authorities. If a person or institution wishes to use the digital currency to transact overseas, a daily transactions statement must be submitted to the central bank.

In addition, the Australian regulators also said last month that they will be supervising transactions of digital currency for the first time. The supervision will gradually be extended to Bitcoin and other digital currencies. Australia will also increase its efforts to combat cryptocurrency activities such as money laundering and financing of terrorists organizations.

At the same time, the Moscow stock exchange said at the end of last month that it welcomes Bitcoin and other digital currency trading. But the Russian media reported that the government may soon prohibit ordinary residents living in residential apartments to mine for digital currencies.

Therefore, although different countries are adopting different attitudes towards cryptocurrency, one thing remains clear -- As investors gain interest, governments also become stricter, especially towards the ICO market.

[PAVEL BAINS, Bluzelle CEO and Co-Founder] "Thats where what China did is great because we know regulatory bodies would come down, to this thing. It's ... how can it not? And whenever you have something flash with cash drawing people in, you always are gonna have those fake people come out, and those bad players and bad actors. so its important that you know, government bodies like the PBOC come in and say, hey, we need to stop this."

We will continue to keep watch.

CNBC's Qian Chen reporting from Singapore.

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