Home Business China declares all crypto-currency transactions illegal

China declares all crypto-currency transactions illegal

2
crypto-currency, china

China’s central bank has announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin.

“Virtual currency-related business activities are illegal financial activities,” the People’s Bank of China said, warning it “seriously endangers the safety of people’s assets”.

China is one of the world’s largest crypto-currency markets.

Fluctuations there often impact the global price of crypto-currencies.

The price of Bitcoin fell by more than $2,000 (£1,460) in the wake of the Chinese announcement.

It is the latest in China’s national crackdown on what it sees as a volatile, speculative investment at best – and a way to launder money at worst.

READ ALSO:   China to give COVID vaccine to children as young as 3

However, there has been a significant crackdown this year.

In May, Chinese state intuitions warned buyers they would have no protection for continuing to trade Bitcoin and other currencies online, as government officials vowed to increase pressure on the industry.

In June, it told banks and payment platforms to stop facilitating transactions and issued bans on “mining” the currencies – the trade of using powerful computers to make new coins.

READ ALSO:   Kogi tells all business owners to register now or risk being punished

But Friday’s announcement is the clearest indication yet that China wants to shut down crypto-currency trading in all its forms.

The statement makes clear that those who are involved in “illegal financial activities” are committing a crime and will be prosecuted.

And foreign websites providing such services to Chinese citizens online is also an illegal activity, it said.

Follow Us on Facebook – @LadunLiadi; Instagram – @LadunLiadi; Twitter – @LadunLiadi; Youtube – @LadunLiadiTV for updates

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here