The People’s Bank of China declared on Friday that all cryptocurrency-related transactions are illegal in the country and must be prohibited, citing national security and the “protection of people’s assets.”
China also stated that international exchanges are not permitted to provide services to domestic consumers.
Ten Chinese government agencies pledged in a joint statement to maintain a “high pressure” crackdown on cryptocurrency trade in the country.
The People’s Bank of China barred internet, banking, and payment firms from promoting cryptocurrency trading on their platforms.
The decision has already caused some crypto traders to worry, causing the price of bitcoin and many other currencies to fall. At the time of writing, Bitcoin was down 5.5 per cent.
China, home to some of the world’s top crypto mining services, is also pursuing such firms. The National Development and Reform Commission announced a countrywide cleaning of cryptocurrency mining, calling the effort “imperative.”
This is not the first time China has proclaimed a crackdown on cryptocurrency-related activity, but until now, so many official entities have refused to work together on such initiatives.