China Bans Bitcoin and Other Cryptocurrencies

• The People’s Bank of China has declared all cryptocurrencies and crypto-related activities illegal

• The bank has warned that Bitcoin and other cryptocurrencies are speculative assets that endanger the safety of people’s assets

• The ban has resulted in a dip in the crypto market with the price of BTC falling back to $42,100 on Friday morning after climbing above $44,000 earlier

China’s Central bank has declared all cryptocurrencies and transactions involving digital tokens illegal.

The People’s Bank of China issued a statement warning that Virtual currency-related business activities are illegal and pose danger to people’s assets.

The sudden news from the Asian powerhouse resulted in a tsunami that brought the market cap of cryptocurrencies down by 5.8%.

The world’s number one cryptocurrency by market cap, Bitcoin lost more than $2,000, falling to $42,100, following the announcement.

This is not the first time that China has severely cracked down on cryptocurrencies, which have been deemed speculative assets by the government.

Although crypto-trading have officially been banned in China since 2019, citizens have continued to access digital assets through foreign exchanges.

Read also: Top Football Club PSV Invests in Bitcoin

Earlier In May, Chinese institutions threatened to remove protection for buyers who continued to buy cryptocurrencies from foreign exchanges.

In June, the government further told banks and payment platforms to stop facilitating crypto transactions and banned mining of the currencies.

However, Friday’s announcement gives the strongest indication that the country is set to go all out against cryptocurrencies.

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