on the crypto
China's central bank said it considers all cryptocurrency transactions to be "illegal," the country's strongest indication of its hard line against digital tokens like Bitcoin.
"Virtual currency trading activities are illegal financial activities," the People's Bank of China said in a question and answer, adding that the business "seriously endangers the security of people's assets."
Danger to Chinese people or to Chinese banks?
The bank also indicated that it was illegal for foreign exchanges to provide virtual currency transactions to Chinese citizens.
The bank said China will develop "new systems" to counter the risks posed by cryptocurrencies.
Volatility of cryptocurrencies
The prices of Bitcoin and Ether, the two largest cryptocurrencies, fell by about 5% and 7%, respectively, in the hours following the bank's statement.
This could therefore be the right time to invest in virtual currency. Like? For example using a safe and reliable platform such as Bitcoin Pro which has already made thousands of users happy.
In a separate statement, the National Development and Reform Commission reiterated China's policy of closing cryptocurrency mining operations and blocking new mining projects.
China officially banned cryptocurrencies in 2019, but began taking tougher measures against cryptocurrency transactions and mining in May.
In June, China told banks and payment platforms in the country to stop facilitating crypto transactions and issued bans for cryptocurrency miners.
Cryptocurrency Mining
Such statements have led to several drops in the price of cryptocurrencies over the course of this year, with Bitcoin remaining well below its current all-time high of over $ 64.000, reached in mid-April.
The crackdown has also led cryptocurrency miners, who run energy-intensive computing centers that generate new coins and process transactions, to settle elsewhere.
According to the Cambridge Center for Alternative Finance, China accounted for 2019% of global Bitcoin mining energy consumption in September 75, but by April 2021 it had dropped to 46%.
However, China remains one of the largest cryptocurrency markets in the world and the largest single base for cryptocurrency miners.
The cryptocurrency crackdown is itself part of a broader tightening of digital controls in China that has affected everything from online gaming to social media celebrity culture.
And what do you think of this definitive ban on cryptocurrencies imposed by China? Given that there is so much talk about its official digital currency, would this be the first step towards its realization? Let us know in the comments below.
