BlockchainBusiness

Cryptocurrency-related activities are illegal in China: Big Update

Credit: Bloomberg

It’s not the first time China has gotten tough on cryptocurrencies. Earlier this year, Beijing announced a crackdown on crypto mining.

China deems all crypto-related transactions illegal, bitcoin slips 5%

The People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited.

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Overseas cryptocurrency exchanges providing services in mainland China are also illegal, the PBOC said.

All cryptocurrency-related transactions are illegal and must be banned, China’s central bank said, sending the strongest signal yet on its determination to crack down on the industry.

Ten Chinese government agencies, including the central bank as well as banking, securities and foreign exchange regulators, said in a joint statement that they would work closely to maintain a “high-pressure” crackdown on speculative trading of cryptocurrencies.

All cryptocurrencies, including bitcoin and tether, are not fiat currency and can’t be circulated on the market, People’s Bank of China said on its website. All crypto-related transactions, including services provided by offshore exchanges to domestic residents, are illicit financial activities, the PBOC said in the statement. The regulator will also bar financial institutions, payment companies and internet firms from facilitating cryptocurrency trading, and will strengthen monitoring of risks from such activities.

In a Q&A posted to its website, the People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services in mainland China are also illegal, the PBOC said.

“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,” the PBOC said, according to a CNBC translation of the comments. Workers of foreign crypto exchanges will be investigated, it added.

The PBOC said it has also improved its systems to step up monitoring of crypto-related transactions and root out speculative investing.

Abhishek Shah

Journalist at TechMantle Technology Writer, Entrepreneurship, Business, IoT, Management

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