Chinese Central Bank Declares All Crypto Transactions Illegal

Chinese Central Bank Declares All Crypto Transactions Illegal

The Chinese government today declared all financial transactions involving cryptocurrencies illegal and declared a national ban on crypto mining. Foreign crypto exchanges that offer services in China are also no longer allowed and are considered an illegal financial activity. In addition, investigations will be launched into employees of foreign crypto companies. Domestic crypto exchanges have been banned in China for years.

Furthermore, the Bank of China reiterated that financial institutions and non-banking institutions are not allowed to offer services and activities related to cryptocurrencies. The bank also claims that it has improved systems to monitor crypto-related transactions and prevent speculative investments.

The announcement of the Chinese central bank caused a drop in bitcoin price. The bank also mentions bitcoin and ethereum by name and states that they are issued by "non-monetary authorities" and cannot be used as currencies in the market. The Chinese central bank previously tested its own digital currency, but it is not mentioned.

Furthermore, several Chinese government agencies have announced that they will tackle crypto mining in the country to meet climate goals, among other things. In addition, crypto mining would hardly contribute to China's economic growth and consume large amounts of energy. As part of the approach, the Chinese regime wants to cut off financial support and energy supplies for crypto mining.

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