Trading in cryptocurrency will be considered “illegal financial activity” in the future, China’s central bank declares. Violations of the ban will be punished. The announcement causes a price crash on the crypto market.
Cryptocurrencies have long been a thorn in the side of the Chinese leadership, and now the Chinese central bank is cracking down on Bitcoin, Ether and Co. All financial transactions with virtual currencies are considered illegal, according to the central bank. Transactions related to digital currencies are “illegal financial activities” and suspected suspects must expect criminal investigations. With its decision, not only digital currency trading but also the sale of digital assets and crypto derivatives transactions are banned.
Immediately after the announcement from Beijing, Bitcoin, which is considered the best-known cryptocurrency, lost value and plummeted more than six percent. The digital currency Ethereum also lost significant value with minus 10 percent