All cryptocurrency-related transactions must be outlawed and we will take all measures available to us to prevent the spread of this illegal activity.
10 Chinese government agencies, including the central bank and authorities for banking, securities, and foreign exchange, among others, said in a statement that they would keep cracking down on speculative trading of cryptos.
All cryptocurrencies, including bitcoin and tether, are not fiat. The term “fiat” refers to any currency which is not backed by a physical commodity such as gold and silver. Regulations will be imposed to combat excessive speculation. The PBOC has announced that all crypto-related transactions, including those from offshore exchanges to domestic residents, are illicit financial activities. The regulator will prohibit financial institutions, payment companies, and internet service providers from providing services to cryptocurrency platforms, and it will significantly boost monitoring of risks stemming from such activities.
The government will “resolutely clamp down on virtual currency speculation, and related financial activities to maintain economic stability, according to the PBOC, “financial and social order” is a keen issue in China and one that they’re particularly focused on.
The NDRC has announced a nationwide crackdown on cryptocurrency mining. Public agencies across China have made similar announcements previously.
Chinese government has officially placed a ban on cryptocurrency
Bitcoin briefly dropped by as much as 5% on Friday. Other cryptocurrencies saw a similar fall in value.
“Crypto markets are in an extremely frail state overall, and these sorts of downswings speak to that; there’s a degree of panic in the air,” Joseph Edwards, at crypto broker Enigma Securities, told Reuters. Crypto remains a grey area, legally speaking, in China.
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The price of cryptocurrency and related firms like miners is weakening with US-listed companies, Riot Blockchain, Marathon Digital, and Bit Digital all sliding between 4.1% and 5.1%. Crypto exchange Coinbase Global fell 2.7%.
Earlier this year, the Chinese authorities announced that they would start cracking down on cryptocurrency mining. This led to a huge sell-off of bitcoin and other coins.
Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.