China Central Bank Declares All Cryptocurrency Activities Illegal
China's central bank officially labels all cryptocurrency activities illegal and vows a harsh crackdown on the industry. The announcement causes immediate drops in bitcoin and ethereum prices.
China's central bank declares all cryptocurrency activities strictly illegal and vows a harsh crackdown on the market. The People's Bank of China states that services involving trading, order matching, token issuance, and derivatives for virtual currencies face complete prohibition.
The PBOC explicitly warns that overseas crypto exchanges providing services to mainland residents violate the law. The bank promises to investigate workers at these foreign exchanges and steps up its monitoring systems to root out speculative crypto investing.
This tough stance causes immediate market reactions, with bitcoin dropping over 6.5% and ethereum falling 9%. Crypto-exposed stocks like Coinbase, MicroStrategy, and Riot Blockchain also slump as China builds on its earlier crackdown on crypto mining operations.