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Central Bank of China Ban All Cryptocurrency and Transactions treated as Illegal including mining and blockchain-related stocks, PBOC also declared that offenders will be treated as Criminals under the law’s eye.
The global value of cryptocurrencies including Bitcoin and other crypto have massively fluctuated over the past year partly due to Chinese regulations, which have sought to prevent speculation and money laundering.
The People’s Band of China (PBOC) said in the statement that, “Virtual currency-related business activities are illegal financial activities.”
Central Bank of China Ban All Cryptocurrency and Transactions treated as Illegal after new regulations against Crypto market rules- what to expect now?
The PBOC further added in the statement that offenders would be “investigated for criminal liability in accordance with the law.“ He PBOC added that, This was “seriously endangering the safety of people’s assets.”
In the notice issued by Central Bank of China, it bans all the financial transactions or activities involving cryptocurrencies like trading in crypto, buying and selling of tokens, transactions involving virtual currency derivatives and illegal fundraising.
The Central Bank of China said that in recent years trading of Bitcoin and other virtual currencies had become “widespread, disrupting economic and financial order, giving rise to money laundering, illegal fund-raising, fraud, pyramid schemes, and other illegal and criminal activities.”
Bitcoin extended it losses on Friday after China’s latest crackdown on cryptocurrencies. Bitcoin, which had already been falling before the announcement, dropped more in value before trimming losses to stand at $42,256 (roughly Rs. 31 lakhs).
While crypto creation and trading have been illegal in China since 2019, further crackdowns this year by Beijing warned banks to stop crypto-related transactions and closed much of the country’s vast network of Bitcoin miners.
This latest statement by the Central Bank of China sent the strongest yet signal that China is closed to cryptocurrencies.
Cryptocurrency Regulation locked in China
The world’s largest biggest digital currency, Bitcoin, and other cryptocurrencies can not be traced by a country’s central bank, that make any country difficult to regulate cryptocurrencies.
The ban in cryptocurrencies also opens the gates for China to introduce its own digital currency, which is already in the pipeline, allowing the central government to monitor transactions.
In June this year, Chinese officials said more than one thousand people had been arrested for using the profits from crime to buy cryptocurrencies.
Many key Chinese provinces banned the operation of cryptocurrency mines since the starting of 2021, with one region accounting for eight percent of the computing power needed to run the global blockchain, a set of online ledgers to record Bitcoin transactions.
The Bitcoin values felled in May this year on the back of a warning by Beijing to investors against speculative trading in cryptocurrencies.