China’s Central Bank Declares Cryptocurrency Transactions As Illegal

The bank has instructed financial and internet firms to stop allowing cryptocurrency trades on their platforms. Foreign exchanges are also prohibited from providing services to Chinese residents.

China Central Bank Declares Cryptocurrency Transactions As Illegal - SurgeZirc UK
China's Central Bank Declares Cryptocurrency Transactions As Illegal / Photo credit: Getty Images

China’s cryptocurrency crackdown is still going strong. The People’s Bank of China has declared that cryptocurrency transactions are illegal and has called for a formal ban. Concerns about national security and the safety of residents’ assets were cited.

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According to Bloomberg, the bank claims that cryptocurrencies are not fiat currency and cannot be circulated. Any cryptocurrency transaction is now considered criminal financial activity.

The bank has instructed financial and internet firms to stop allowing cryptocurrency trades on their platforms. Foreign exchanges are also prohibited from providing services to Chinese residents.

According to the bank, the rise of Cryptocurrency transactions has resulted in an increase in “money laundering, illegal fund-raising, fraud, pyramid schemes, and other illegal and criminal activities.” Those who appear to be breaking the rules will be “investigated for criminal liability.”

Several government agencies in the country are collaborating to crack down on cryptocurrency use. According to TechCrunch, the National Development and Reform Commission is looking to ban crypto mining.

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In June, the Sichuan local government banned cryptocurrency mining, prompting some miners to flee the country. Following the announcement, the price of Bitcoin fell from around $45,000 to around $41,500 on Friday morning.

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