China declares Cryptocurrency illegal. China on Friday declared a ban on all cryptocurrencies. The global values of cryptocurrencies, along with Bitcoin have been fluctuating over the last year partly because of Chinese regulations. So, the Chinese regulations have sought to prevent speculation and money laundering.
On Friday, the People’s Bank of China (PBOC) said in an online statement, “Virtual currency-related business activities are illegal financial activities.” And, they added that offenders would be “investigated for criminal liability in accordance with the law”.
Furthermore, the notice imposes a ban on all financial activities related to cryptocurrencies. As a result, the Chinese cryptocurrency list that got banned are trading crypto, selling tokens, transactions involving virtual currency derivatives, and “illegal fundraising”.
With this action, China took itself out of the bitcoin legal countries list 2021. Because of which the world’s largest cryptocurrency dropped over 6% to $42,2167, having earlier been down about 1%.
However, bitcoin is the world’s largest digital currency, and another crypto cannot be traced by a country’s central bank, which will make them difficult to regulate.
As per the analysis, China is afraid of the proliferation of illicit investments and fundraising from cryptocurrency in the world’s second-largest economy. It also has strict rules around the outflow of capital.
Before the crackdown, which started earlier this year, virtual currency mining had been a big business in China, accounting for more than 50% of the world’s crypto supply.
Answer: China banned bitcoin for the 4th time now.
Answer: China imposed a ban on all digital tokens, and said they are not legal and cannot be used as a currency in the market. The online crypto services to Chinese residents provided by international virtual currency exchanges will also be considered illegal financial activity. Crypto derivatives trading is banned as well.
Answer: Yes, China banned all crypto transactions and pledged to root out mining of digital assets, which will lead to a tough blow towards the industry.
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