China’s central bank said on Friday that all financial transactions involving cryptocurrencies were illegal, heralding the death knell for digital currencies in China after a crackdown on volatile commerce.
Global values of cryptocurrencies, including Bitcoin, have fluctuated significantly over the past year, in part due to Chinese regulations, which have sought to prevent speculation and money laundering.
“Business activities related to virtual currencies are illegal financial activities,” the People’s Bank of China (PBOC) said in an online statement on Friday, adding that the violators would be subject to “criminal liability investigation in accordance with the law “.
The notice bans all related financial activities involving cryptocurrencies, such as crypto trading, the sale of tokens, transactions involving virtual currency derivatives, and “illegal fundraising”.
The central bank said that in recent years, “the trade and speculation of Bitcoin and other virtual currencies has become widespread, disrupting the economic and financial order, giving rise to money laundering, collecting funds, fraud, pyramid schemes and other illegal and criminal activities ”. . “
In June, Chinese officials said more than 1,000 people were arrested for using the proceeds of crime to buy cryptocurrency.
Several Chinese provinces had already banned cryptocurrency mining since the start of this year, with a region accounting for 8% of the computing power needed to run the global blockchain – a set of online ledgers to record bitcoin transactions. .
Bitcoin values fell in May following a warning from Beijing to investors against speculative cryptocurrency trading.
© 2021 AFP