China: PBoC bans all crypto-related financial transactions

China: PBoC bans all crypto-related financial transactions

In its latest statement regarding cryptocurrency trading, the Central Bank of China (PBoC) states that all financial transactions related to cryptocurrencies are illegal.

Bitcoin cryptocurrency. Photo: AFP/VNA

According to the PBoC, cryptocurrency transactions “seriously jeopardize the safety of people’s assets”.

The bank warned it would closely monitor cryptocurrency transactions, and banned overseas exchanges from providing services to mainland Chinese investors. The PBoC stated that financial institutions, payment companies and Internet companies are prohibited from facilitating cryptocurrency transactions, and will strengthen monitoring of the risks from this activity.

The above announcements come as the value of the cryptocurrency Bitcoin has dropped by nearly 5% in the trading session on September 24.

In the last drop, Bitcoin lost 4.6% in value, to only $42,874. Many smaller coins that often trade in tandem with Bitcoin also fell in value. Specifically, Ether fell more than 8%, while XRP slipped 7%.

“Overall, the crypto market is in a very fragile state and these drops show that,” said Joseph Edwards, head of research at crypto brokerage Enigma Securities. – it’s fear in the market. In China, crypto continues to exist in the gray zone of legitimacy.”

Stocks in the crypto sector and blockchain-related companies are also under pressure, as US-listed Bitcoin miners Riot Blockchain, Marathon Digital and Bit Digital slide. share price from 4.1% to 5.1% in pre-opening trading.

China was once considered the world’s Bitcoin mining factory, but since the beginning of this year, the government has issued a series of regulations to limit the operation of Bitcoin “miners” and apply place restrictions on crypto-related banking services. These strict policies caused a massive sell-off in Bitcoin and other cryptocurrencies.