China declares all crypto-currency transactions illegal
- ByStartupStory | September 24, 2021
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”.
The Chinese cryptocurrency market is one of the world’s largest and fluctuations there severely 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. Trading crypto-currency has officially been banned in China since 2019 but has continued online through foreign exchanges. But Friday’s announcement is the clearest indication yet that China wants to shut down cryptocurrency 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.
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