China’s central bank has declared that all transactions in cryptocurrency/ digital coins illegal, which has in actual fact put a ban on all cryptocurrencies like Bitcoin and Ethereum.
The announcement was made on Friday 24th as the second largest market continues its crackdown on the volatile Cryptocurrency markets.
Upon the announcement, the price of bitcoin fell by a whopping $2000 within minutes
“Virtual currency-related business activities are illegal financial activities,” the People’s Bank of China said, stating that it “seriously endangers the safety of people’s assets”.
Cryptocurrency trading has been illegal in China since 2019 however trading has continued online among various foreign exchange companies and China has been one of the biggest Cryptocurrency markets and officially known as the largest Bitcoin miner in the world although the mining locations are shifting due to crackdown.
Since this year began, China has done a lot of crackdown on cryptocurrencies, banning various crypto trading websites and ordering all banks and payment systems to stop facilitating crypto related transactions.
Whereas cryptocurrencies especially Bitcoin are gaining some recognition in sovereign countries like El Salvador and Cuba who are making them a legal tender, the virtual currency is still facing a lot of crackdown in various regional economic powers like Turkey and China while in many countries, the currency remains illegal and traded only on black markets and online foreign exchanges.