The People’s Bank of China (PBoC) has banned all cryptocurrency-related transactions, according to its September 24 statement. The bank has released a new document in which it reveals how it is optimizing measures to continue curbing the crypto trading activity.
New restrictions on cryptocurrencies from China
According to the statement, Bitcoin, Ethereum, Tether and other major coins are prohibited from circulating in the market. All trading activities involving cryptocurrencies are now considered illegal in China. However, China has not banned cryptocurrency ownership. The PBOC emphasizes that it is illegal for exchanges to provide services to Chinese citizens, claiming that it will support monitoring the risks associated with cryptocurrency trading.
According to the statement, “Overseas cryptocurrency exchanges that provide services to Chinese citizens over the Internet are also considered illegal financial activities. It is stated that the activities related to illegal crypto money will be “severely punished”. Bloomberg’s Francine Lacqua commented that China is most likely trying to stem capital outflows. Gabor Gurbacs, director of VanEck, predicts that China’s tough stance on crypto will cause investors to move “too much capital” from China to western countries.
Plan for crypto mining released
China’s state planner has also increased its restrictions on cryptocurrency mining. It has published a detailed plan on how to eliminate the industry in the country, which requires the “proper disposal” of the remaining mining couples. This comes after nearly all major states imposed a ban on Bitcoin mining during the cool summer months. Cryptocoin. com, as a result, many miners had to move abroad to operate.
China initially banned exchanges and ICOs for cryptocurrencies in September 2017. While the crypto community tends not to view the “Chinese FUD” as mundane and unimportant, Bitcoin has been bearish. The price of Bitcoin (BTC), which is in the first place by market value, experienced a sharp decline of 5 percent in just a few minutes. On Bitstamp, the lowest level of $ 42,977 was seen during the day. The drop in BTC also affected coins such as Ethereum, Cardano, Binance Coin and XRP. These altcoins have dropped by about 7 percent.