China’s central bank has declared all cryptocurrency transactions illegal. This happened on Friday with a message on the website of the financial institution, which says that all foreign crypto exchanges are prohibited from providing services to investors in the country.
The Chinese government “will resolutely curb speculation on virtual currency and related financial activities and misconduct to protect people’s property and maintain economic, financial and social order,” the China National Bank said in a statement.
This is another move by the Chinese authorities in their ongoing struggle to push cryptocurrencies out of the country and limit their influence.
With this move, Beijing will ban financial institutions, payment companies and Internet platforms from facilitating cryptocurrency trading. The new rules also provide for the strengthening of the monitoring of the risks of activities related in one way or another to digital money.
From now on, all crypto-related transactions, including services provided by offshore exchanges to local residents, will be considered illegal financial activities punishable under Chinese law.
The news of the decision of the authorities in Beijing led to reactions in the price of major cryptocurrencies. For example, the price of bitcoin fell by about 4.5%, falling from $ 45,054 for bitcoin to $ 40,936 before settling at about $ 41,000.
The expectation is that the Chinese authorities will press the crypto sector and push it out of their territory to continue. Until recently, the country was a leading player in the crypto market, with more than half of the world’s “bitcoin diggers” concentrated there.
Authorities’ efforts, under the pretext of fighting to reduce the country’s carbon footprint, have taken action to limit the use of digital money. This has led to the rejection of many or relocation to other, more suitable places such as Kazakhstan or Texas.
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