China’s central bank has declared all cryptocurrency transactions illegal. At the same time, China has effectively banned digital currencies such as Bitcoin.
“All transactions involving virtual non-existent currency are illegal economic activities,” the People’s Bank of China said. He also warned that such activities could endanger people’s property.
China is one of the world’s largest markets for cryptocurrencies. The fluctuations there have affected the global value of cryptocurrencies. In a ‘Bitcoin scandal’, the Twitter accounts of several billionaires, leaders and companies have been hacked by militant groups.
With the recent announcement of China, the price of Bitcoin has dropped by more than two thousand dollars. Although cryptocurrency transactions have been officially banned in China since 2019, online foreign exchange has continued. However, there has been a lot of action this year. The central bank’s announcement on Friday is a clear indication that China wants to shut down all forms of cryptocurrency-related transactions.
The central bank’s announcement has made it clear that “those involved in illegal economic activities” are committing crimes and will be prosecuted. The central bank also said that the use of foreign websites to provide cryptocurrency-related services to Chinese citizens was illegal.