China Expands Cryptocurrency Ban to All Domestic Transactions
Ten Chinese government authorities officially declare all cryptocurrency transactions illegal, including services from offshore exchanges targeting citizens. The sweeping ban causes an immediate drop in global bitcoin prices as the nation cracks down on what it views as volatile and risky assets.
Ten Chinese government authorities, including the People's Bank of China (PBOC), jointly issue a notice declaring that all cryptocurrency transactions are illegal. This comprehensive ban explicitly prohibits offshore exchanges from providing services to Chinese citizens and states that any China-based employees assisting these offshore platforms face investigation and prosecution. The authorities clarify that cryptocurrency is not legal tender in the country.
Simultaneously, the National Development and Reform Commission (NDRC) directs local governments on the complete wind-down of cryptocurrency mining activities within their jurisdictions. The Chinese government views cryptocurrencies as volatile investments that pose serious risks to people's assets and present significant money laundering concerns. This latest move represents a major escalation in an ongoing national crackdown.
The announcement immediately impacts the global market, causing the price of bitcoin to drop by more than US$2,000 as China historically holds one of the world's largest cryptocurrency markets. While these restrictions feel sudden to some, they build upon previous actions, such as the 2017 shutdown of local exchanges and the 2019 blocking of access to domestic and foreign trading platforms. China now joins other nations like Egypt, Indonesia, and Nepal in heavily restricting or banning cryptocurrency usage.