China declares all crypto-related transactions illegal and forbids overseas exchanges from serving its citizens | Currency News | Financial and Business News

China is increasingly taking action against Bitcoin.

Florence Lo / Illustration / Reuters

• The People’s Bank of China said Friday that all transactions related to cryptocurrencies are illegal.
• The central bank said cryptocurrencies are “not legal and should not and must not be used as currency in the market”.
• It also banned foreign exchange from offering crypto services to residents in China’s largest crackdown to date.
• Register here for our daily newsletter 10 things before the opening bell.

China’s central bank on Friday declared all cryptocurrency-related transactions illegal and said that foreign exchange was banned from providing services to Chinese residents in its toughest crackdown on the digital asset industry to date.

Coins such as Bitcoin and Ether “are not legal and should not and should not be used as currency in the market,” the People’s Bank of China said in a statement.

Virtual currencies do not have the same legal status as fiat currencies because they are issued by non-monetary authorities and use encryption technology, it said.

Bitcoin fell 4% to around $ 42,560 in the wake of the announcement, according to CoinDesk. Ether lost 7.5% to hit $ 2,881, Ada fell 3% to $ 2.16, and Ripple’s XRP fell 7% to 92 cents. Dogecoin fell 7% to 20 cents.

The PBOC also said that all crypto-related transactions are not allowed under the law.

Activities considered illegal include a range of operations such as buying and selling virtual assets as a central counterparty and providing intermediation or pricing services for crypto transactions. It also includes funding for token spending, crypto-derivative transactions, and other activities suspected of selling tokens illegally.

“Those who engage in related illegal financial activities (which constitute a criminal offense) will be investigated for criminal liability under the law,” it said.

The central bank has specifically named the services that offshore crypto exchanges offer Chinese customers via online platforms.

“Providing overseas virtual exchange services to Chinese residents over the Internet is also an illegal financial activity,” it said.

Local employees at overseas crypto exchanges who continue to operate illegally and those who offer them services such as marketing and payments will be screened in accordance with the law, the PBOC said.

In its policy, the central bank said the crypto hype has disrupted the financial order in China and created a breeding ground for fraud, gambling, money laundering and pyramid schemes.

National regulators – including the Central Cyberspace Administration, the Supreme People’s Court, the Ministry of Industry and Information Technology, and the Ministry of Public Security – plan to work together on these issues, it said.

Continue reading: Before Bitcoin’s $ 3 billion options expired this Friday, 5 experts told us how much crypto and other leading altcoins can rise or fall from here: “If the markets bleed, they will bleed as a group . “

source https://www.bisayanews.com/2021/09/24/china-declares-all-crypto-related-transactions-illegal-and-forbids-overseas-exchanges-from-serving-its-citizens-currency-news-financial-and-business-news/