Crypto Prices Stumbles As China Declares Cryptocurrency Transactions Illegal

The measure reaffirms China’s severe position against the usage of digital currencies, which is the strongest of any major country to far.


All cryptocurrency-related transactions are unlawful, according to China’s central bank, strengthening the country’s harsh stance against digital alternatives to government-issued money.

The People’s Bank of China said the latest notification was issued to further avoid the risks associated with crypto trading and to preserve national security and social stability, according to a statement posted on its website on Friday afternoon.

Senator Pat Toomey sees this as an opportunity for US to be the next crypto giant as china shuts down the crypto market.

He further wrote in a corresponding tweet that,

“Beijing is so hostile to economic freedom they cannot even tolerate their people participating in what is arguably the most exciting innovation in finance in decades. Economic liberty leads to faster growth, and ultimately, a higher standard of living for all.”

Following the announcement, cryptocurrencies fell in value. Bitcoin’s price dropped by more than 8% from its 5 a.m. ET Thursday high before recovering some of those losses. The bitcoin price was just about $41,370 per bitcoin.

The central bank stated cryptocurrencies, such as bitcoin, ether, and tether, are issued by nonmonetary entities, utilise encryption technologies, and exist in digital form, and should not be circulated or used in the market as currencies.

It also stated that it is prohibited for foreign exchanges to give services to Chinese residents via the internet.

Although China outlawed cryptocurrency exchanges from operating within its borders several years ago, residents have continued to discover ways to trade bitcoin and other digital currencies over-the-counter or through peer-to-peer transfers.

THE HATRED AMONG THE TWITTERATIS FOR CHINA

China hasn’t done this for the first time and people aren’t angry with the nation for the first time. With china’s crackdown news, many investors suffered huge losses and to compensate the thing they come to Twitter.

Investor and entrepreneur Anthony Pompliano posted series of tweets to showcase his anger.

Bitcoin is anti-china technology”, he wrote in his next tweet.

Another user came with a proof that chinese government still holds most of the bitcoin even after banning it.

Regulators around the world are pushing to place tougher regulations on cryptocurrency markets and corporations in order to protect investors and manage what some see as the financial industry’s Wild West.

Some cryptocurrency companies are seeking to collaborate with regulators in order to increase their credibility among consumers and investors.

Switzerland approved a new digital stock market, SIX Digital Exchange, earlier this month, paving the door for more bitcoin and other digital asset trading in the country.

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IMAGE CREDITS: Gettyimages