All Crypto Transactions Now Illegal in China

All acts related to cryptocurrencies are illegal, the Chinese central bank has stated. In response to the decision, the value of bitcoin and co tumbles.

 

Owning and trading crypto coins has been banned in China for some time, but according to the People’s Bank of China (PBOC), foreign companies cannot carry out crypto transactions for Chinese people.

The Chinese central bank will ban financial institutions, payment processors and internet companies from allowing the trade in cryptocurrencies such as bitcoin. The bank wants to monitor this more closely.

China has also been hunting crypto miners for some time. These are small companies that solve a set of mathematical problems with fast computers to process payments in crypto coins. The announcement of the ban caused a fall in the price of major digital currencies, such as bitcoin.

It yielded 7 percent in the direction of $41,000 each. Other coins such as Ether and Litecoin lost more than 10 percent.

For example, China has been critical of virtual currencies for some time because of the high energy consumption when ‘mining’ the coins. But, on the other hand, Beijing is currently launching a digital yuan.

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