s central bank announced on Friday that all cryptocurrency transactions are considered illegal in the country, including Bitcoin
“Trading activities related to virtual currency are illegal financial activities
,” the institution said, warning that it “seriously jeopardizes the safety of people’s assets.”
Following the announcement, the price of Bitcoin fell more than
The ban in
Moves from Beijing
Cryptocurrency trading has been officially banned in
However it has continued to take place online through offshore transactions.
In May, financial authorities warned buyers that they could lose their money and the following month banks and payment platforms received notices to avoid cryptocurrency transactions.
But Friday’s announcement is the clearest indication
The statement makes it clear that those involved in “illegal financial activities” are committing a crime and will be prosecuted
And foreign websites that provide such services to Chinese citizens online are also considered illegal.
The technology at the core of many cryptocurrencies, including Bitcoin, relies on thousands of computers spread across the planet that verify and control transactions on a ledger known as the blockchain
New “coins” are randomly awarded as rewards for those who participate in this work known as cryptographic “mining”.
The effect is clear: while in
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