The Central Bank of China Declared All Cryptocurrency Transactions Illegal

The Central Bank of China Declared All Cryptocurrency Transactions Illegal

The financial institution announced that it will prohibit foreign exchanges from providing services to mainland Chinese investors through the Internet. The price of Bitcoin and other digital currencies falls, what is going to happen? Find out in this article. 

The financial institution announced that it will prohibit foreign exchanges from providing services to mainland Chinese investors through the Internet. The price of Bitcoin and other digital currencies falls, what is going to happen? Find out in this article. 

The Central Bank of China pledged on Friday to crack down on illegal cryptocurrency trading activities, banning foreign exchanges from serving mainland Chinese investors over the Internet.

The Central Bank of China pledged on Friday to crack down on illegal cryptocurrency trading activities, banning foreign exchanges from serving mainland Chinese investors over the Internet.

The entity also said that it will prohibit financial institutions, payment companies and Internet companies from facilitating cryptocurrency trading, and will strengthen monitoring of the risks of such activities.

"All cryptocurrencies, including Bitcoin and Ether, are not fiat currency and cannot circulate in the market," the People's Bank of China stressed on its website. "They seriously endanger people's assets," he explained.

All cryptocurrency-related transactions, including services provided by foreign exchanges to domestic residents, are illicit financial activities, the entity added in a statement.

Bitcoin fell as much as 4.5% this Friday. Ethereum also fell, along with other crypto-related stocks. Together they are down about 7%, according to Bloomberg.

All cryptocurrency-related transactions, including services provided by foreign exchanges to domestic residents, are illicit financial activities, the entity added in a statement.

Meanwhile, the nation's economic planning agency said it is an urgent task for China to root out crypto mining and that crackdown is important to meet carbon targets.

The Central Bank of China stated that in recent years “trade and speculation with Bitcoin and other virtual currencies has spread, altering the economic and financial order, increasing money laundering, illegal fundraising, pyramid schemes. and other criminal and illegal activities ”.

Chinese officials said in June that more than 1,000 people were arrested for profiting from criminal activities to buy cryptocurrencies.

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