Monday, October 18

China declares all cryptocurrency operations illegal

The Chinese Central Bank has declared all cryptocurrency transfers illegal this Friday. All transactions related to cryptocurrencies, whether through Bitcoin, Ether or Cardano, as well as the rest of currencies based on blockchain technology are now considered illicit financial activities, the agency has reported in a statement published in your website.

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“In recent years, speculation with bitcoin and other transactions with virtual currencies has become commonplace, which has disturbed the economic and financial order, has led to money laundering, illegal fundraising, fraud, pyramid scams and other illegal and criminal activities, and has seriously endangered the security of people’s property, “says the Chinese Central Bank.

The notification states that virtual currency exchange, virtual currency trading, provision of aggregation services for virtual currency transactions, issuance and financing of tokens, and trading of virtual currency derivatives and other businesses related to virtual currency “They are all illegal financial activities and are strictly prohibited.” The Agency specifically cites that apps and websites related to cryptocurrency transactions become illegal.

China is the main country producer of cryptocurrencies in the world. In its territory it concentrates a good part of the mining farms that are in charge of writing transactions with cryptocurrencies on the blockchain, work for which they receive a prize in the currency on which they are working. Farms are facilities that concentrate electronic equipment with a high processing capacity that compete to solve a mathematical puzzle. The first to do so, they earn the right to register international transactions on the network and receive remuneration in cryptocurrencies.

The Chinese cryptocurrency mining industry is now in an uncertain place. Right now Bitcoin is down 4.5%, Ethereum 9.5% and Cardano 5%. This move by China comes at a time when world markets are watching with concern the crisis of Evergrande, a real estate giant whose fall could drag down international markets.

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