China's Central Bank Rules All Crypto Transactions Are Illegal

By i24
Posted on 09/25/21 | News Source: i24

'Virtual currency derivative transactions are all illegal financial activities and are strictly prohibited'

China on Friday stepped up its crackdown on cryptocurrency with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.

"Virtual currency-related business activities are illegal financial activities," the People's Bank of China (PBOC) said in an online statement Friday, adding that offenders would be "investigated for criminal liability in accordance with the law."

The central bank said that in recent years trading of Bitcoin and other virtual currencies had become "widespread, disrupting economic and financial order, giving rise to money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities."

This was "seriously endangering the safety of people's assets," the PBOC said. 

This comes several weeks after El Salvador became the first country to use the cryptocurrency as legal tender, alongside the US dollar.