From now on, the circulation of assets such as Bitcoin in China is prohibited, as it is considered an “illicit financial activity”.
The crypto market was just hit hard by China. Bloomberg reports that China has announced that transactions with assets like Bitcoin or Ether will no longer be allowed. This has significantly impacted the price of these digital currencies.
For several months, China has planted an adverse stance on cryptocurrency mining actions; however, this restriction is the most severe imposed to date.
According to a cited source, the People’s Bank of China published on your website that from now on the circulation of cryptocurrencies in its territory is prohibited, considering that said practice is an “illicit financial activity.”
Specifically, the bank has stated that “virtual currencies with characteristics such as not being issued by a monetary authority, using cryptography, distributed accounts or similar technology, and existing in digital form, such as Bitcoin and Ether, including called stablecoins like TEDA, they do not have the same legal status as legal tender and cannot circulate on the market as currency.
The People’s Bank of China will, along with other authorities, implement “comprehensive steps regarding the shut down of payment channels, the removal of related websites, and mobile apps in accordance to the law”.
This issue is serious and could cause further damage to China’s so-called new digital economy.
Remember that, in recent months, the Chinese government would have imposed rules that would prohibit Bitcoin mining from Chinese territory. They cited the harmful environmental impacts. Despite the fact that about 65 percent was mined in China.
The announcement of these bans caused a drop in all major cryptocurrencies worldwide.
Bitcoin fell 6 percent while Ethereum and Dogecoin experienced drops of close to 8 percent.
China launched a campaign to stop cryptocurrency use, particularly Bitcoin.