China Cracks Down, on Cryptocurrency, Declares All Transactions Illegal.
The move by China's central bank has essentially
banned unregulated digital currency such as Bitcoin.
"Virtual currency-related business
activities are illegal financial activities.", The People's Bank of China warned that crypto, "seriously endangers the safety of people's assets.".
The BBC notes that China is one of the world's
largest cryptocurrency markets.
In the wake of the announcement,
the price of Bitcoin fell by over $2,000. .
It is the latest measure in China's massive crackdown on the unregulated crypto market.
The country already banned trading cryptocurrency in 2019, but it has continued
online through foreign exchanges.
In May, Chinese 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.
In June, it told banks and payment platforms
to stop facilitating transactions and
issued bans on "mining" the currencies.
According to the BBC, the most recent announcement
makes clear that those who are involved in, "illegal financial activities", are committing a crime and will be prosecuted.
The statement also said that foreign websites
providing such services to Chinese citizens online
would be considered an illegal activity.
In September 2019, China accounted for 75%
of the world's Bitcoin energy use.
By April 2021, it was responsible for 46%