China’s central bank declares all transactions of cryptocurrencies illegal, effectively banning digital tokens such as Bitcoin, Doge, or Ethereum.
China itself is working on a digital variant of its currency, the Yuan – and is now declaring crypto war on everyone else.
The People’s Bank of China, issued the following notice today:
“Virtual currency transactions, token issuance financing, and virtual currency derivative transactions are all illegal financial activities and are strictly prohibited. Resolutely banned in accordance with the law”.
The statement from today however more or less re-iterates what China’s central bank has previously declared in 2017 already.
Published on September 15th, PBOC stated:
“Virtual currency-related business activities are illegal financial activities. Carrying out legal currency and virtual currency exchange business, exchange business between virtual currencies, buying and selling virtual currencies as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, virtual currency derivatives transactions and other virtual currency-related Business activities suspected of illegal sale of tokens and tickets, unauthorized public issuance of securities, illegal operation of futures business, illegal fund-raising and other illegal financial activities are strictly prohibited and resolutely banned in accordance with the law. Those who carry out related illegal financial activities constitute a crime shall be investigated for criminal responsibility in accordance with the law.”
The increased regulatory pressure in China had already sent the prices of cryptocurrencies on a downward spiral. The two most important, Bitcoin and Ethereum, have seen prices dropping today.
Values from the cryptocurrency sector and companies that deal with Bitcoin and blockchain technology providers and exchanges also were impacted.
The stocks of Coinbase, Riot, Marathon, Silvergate, and Overstockfell in the pre-market US business by up to 7 percent. The shares of the software company MicroStrategy, which has invested billions in Bitcoin, fell by almost 6 percent.