China Claimed Cryptocurrency as “Illegal”

The Chinese government intensifies the cryptocurrency crackdown by introducing stricter and more rigid stances over cryptocurrency transactions and mining. The regulatory body has given a statement that all activities carried out through cryptocurrency will be considered illegal. 

An umbrella ban has been put on cryptocurrency mining in the country. China had put bans on crypto exchanges, local firms dealing in cryptocurrency and held raid operations to haul up mining spots in the country. However, trading continued. Post this announcement a complete crackdown is being seen in China.

The Chinese government has been carrying out its pilot project with the digital Chinese currency – Yuan. it seems like, they are determined to completely centralize the digital finance sphere.

China Made All Activities in Cryptocurrency Illegal

The Chinese government reported, declaring details of its new strategies taken up in cracking down cryptocurrency and banning its use.

“Recently, virtual currency trading hype activities have risen, disrupting economic and financial order, breeding illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering,” said the Chinese government. 

China’s Central Bank declared cryptocurrency illegal in the country.

To prevent these risks from further materializing, the government today has published a notice that clarifies its stance on crypto.

The notice clarifies that virtual currencies do not have the same legal status as legal currency in China. It also reiterates what has been in place for years, namely, that cryptocurrency trading is against the law.

“Virtual currency-related business activities are illegal financial activities,” the government notice read.

The notice also calls for the strengthening of risk monitoring and early warning of virtual currency trading.

This piece of regulatory stance by China has implicated the crypto market.

Bitcoin rates drop on the onset of China’s regulatory news, Source: Bloomberg

The cryptocurrency industry’s flagship cryptocurrency – Bitcoin, its rates have dropped by almost 4% in the hour after this information spread in the media. Whereas, Ethereum rates also faced a drop by 3.3% in the same frame.

Also Read: Crypto Prices Stumbles As China Declares Cryptocurrency Transactions Illegal

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