Cryptocurrency trading just got hit hard. The People’s Bank of China declared on Friday, September 24, that all crypto-asset transactions will be illegal in the country, a further step in its attempt to ban them.
According to a report by The Wall Street Journal, the body announced the measure in a round of questions from investors and argued that all cryptocurrencies without exception should be considered illegal and should be prohibited. The agency has also called for the eradication of bitcoin mining and other digital assets.
The Chinese central bank also wants to prevent financial institutions, payment companies and Internet companies from facilitating cryptocurrency trading. To do this, it will strengthen the monitoring and control of these activities. All transactions related to cryptocurrencies (also those that are carried out through foreign platforms to national residents) will be declared as illicit activities in the Asian country.
“All cryptocurrencies, including Bitcoin and Ether, are not fiat currency and cannot circulate in the market,” says the People’s Bank of China on its website. “They seriously endanger people’s property,” he adds. The country’s economic planning agency has long been behind blocking these transactions and has repeatedly indicated that it was necessary and urgent to eradicate crypto mining in order to meet low-carbon targets.
In accordance with Reuters, the value of Bitcoin fell as much as 5 percent just two hours after the announcement by the People’s Bank of China.