Chinese regulators released a statement proscribing the trading of digital currencies in the country, including digital currencies from domiciled exchanges or from exchanges situated abroad. The regulators are renewing an earlier crackdown on crypto trading, mining, and other activities.
China’s central bank, the People’s Bank of China, disclosed that there was a massive surge in crypto activities in recent times. The PBOC further stated that this is disrupting the country’s economic and financial order by facilitating illegal and criminal activities. It, therefore, imposed this ban in a bid to curtail such unwholesome practices from further spreading.
The latest PBOC directive reads, “Virtual currency-related business activities are illegal financial activities.” Furthermore, it also extends to all financial institutions, traditional banks included, that have crypto-related client offerings. The PBOC says it will punish severely, anyone who runs afoul of this directive.
Furthermore, the PBOC, the Ministry of Public Space, and the Cyberspace Administration of China are putting in place a crypto-detection mechanism. This will monitor and alert any propaganda linked to crypto-trading or mining activities.
In the wake of this recent ban, the price of BTC fell by over 5% dropping from $44,000 to $41,000. Ethereum also dipped 8.86% within the last 24 hours. China first banned crypto mining in May, causing a massive decline in its processing power as most mining companies pulled their equipment.
Image Credits: Pixabay
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