China’s central bank declares all cryptocurrency transactions ‘illegal’

Chinese central bank declares all cryptocurrency transactions 'illegal'
Image: Pexels

China’s central bank announced that all cryptocurrency transactions are illegal. This also effectively bans digital tokens such as Bitcoin.

People’s Bank of China said that “virtual currency-related business activities are illegal financial activities.”

China remains one of the world’s largest cryptocurrency markets.

And the fluctuations therein often impact the global price of crypto-currencies.

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

China sees it as a volatile, speculative investment.

Trading crypto-currency is officially banned in China since 2019. But it has continued online through foreign exchanges.

Today’s announcement is a clear indication that China wants to shut down cryptocurrency trading in all its forms.

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It is now amply clear that those who are involved in illegal financial activities in China will be committing a crime and be prosecuted for the same.

Also, foreign websites that provide such services involving cryptocurrency to the citizens in China online is also an illegal activity, as per the bank.

However, China has long been one of the world’s main centres for mining.

The new coins minting is so popular in China that gamers blame the industry for a global shortage of powerful graphics cards.

These are apparently used by the miners for processing crypto-currencies. China has already had a crackdown on the mining industry.

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