Cryptocurrencies Tech

Crypto Transactions Made Illegal in China

News on the ban sent the value of cryptocurrencies such as Bitcoin and Ethereum tumbling

Crypto Transactions Made Illegal in China
Crypto Transactions Made Illegal in China

China’s central bank declared all cryptocurrency-related transactions illegal, sending the value of cryptocurrencies such as Bitcoin and Ethereum tumbling. 

A ban on cryptocurrency trading was officially introduced in China back in 2019 however trading has continued online through foreign exchanges. An online statement from the People’s Bank of China reads, “Virtual currency-related business activities are illegal financial activities”. 

The PBC insists that cryptocurrency trading has given rise to the disruption of "economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes and money laundering.” 

The statement continued by warning that cryptocurrency trading “seriously endangers the safety of people's assets”. 

In the wake of the statement many leading cryptocurrencies saw their values dip considerably. $2,000 (£1,460) was wiped off the value of Bitcoin, although it has since recovered slightly.  Meanwhile the value of the second largest cryptocurrency, Ethereum slumped by more than 10%. 

George Monaghan, analyst at GlobalData's thematic team, explained:

“This isn't the first time China has threatened action and thus far, it has failed to follow through.” 

"The next few weeks will be rough for crypto markets that were already on edge after the SEC's recent comments, but only actual legislation will have a long-term effect."

Powered by Froala Editor

igaming news
crypto news

iGaming News • China