Image: RABAUZ (Pixabay)

China is doubling down hard on its apparent hatred of all things cryptocurrency. In a new Q&A posted to its website, the People’s Bank of China declared that all activities related to cryptocurrency are now illegal and that the country will be cracking down on services offering trading, order matching, token issuance, and derivatives for virtual currencies. The decision follows Beijing’s crackdown on crypto mining, which began earlier this year.

“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,” the central bank said, according to a translation shared by CNBC. The note also suggests that workers at foreign crypto exchanges will be investigated.

“Financial institutions and nonbank payment institutions cannot offer services to activities and operations related to virtual currencies,” the People’s Bank of China added.

The price of bitcoin has fallen dramatically as a result of China’s statements. From CNBC’s report:

The price of bitcoin sank over 6.5 percent in 24 hours, last trading at around $41,882, according to Coin Metrics data at midmorning Friday ET. Ethereum, the second-largest digital asset, fell 9 percent to around $2,867.

Stocks with heavy exposure to crypto also slumped in midmorning trading on the Nasdaq, with Coinbase down 2 percent, MicroStrategy slipping 5 percent and Riot Blockchain down over 6 percent.

Despite its supposed feelings on crypto, the People’s Bank of China continues to work on its own digital currency. A virtual version of the yuan has already been tested in several regions.

Source: CNBC

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7 Comments

  1. I always hated the saying that the enemy of my enemy is my friend. Let’s just say it is useful when your enemy has more powerful enemies.

  2. How many Latin American countries does it take making Bitcoin their de facto national standard to make up for the fact that China won’t allow it’s use at all?

    I think the correct answer is “There aren’t enough Latin American countries to make that up”

  3. Make no mistake that this decision could be flown under any banner they like but should any other country decide to make its own digital currency guess which one will still be the only one allowed? The door mostly swings one way there.

  4. [QUOTE=”Peter_Brosdahl, post: 41756, member: 87″]
    Make no mistake that this decision could be flown under any banner they like but should any other country decide to make its own digital currency guess which one will still be the only one allowed? The door mostly swings one way there.
    [/QUOTE]
    As long as that currency can’t be mined I don’t give a toss.

  5. [QUOTE=”MadMummy76, post: 41766, member: 1298″]
    As long as that currency can’t be mined I don’t give a toss.
    [/QUOTE]
    Fair enough.

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