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China has expanded its crackdown on cryptocurrencies by declaring that all activities related to digital coins are “illegal.”
The People’s Bank of China, the central bank of China, declared on Friday that it is illegal to provide online services to Chinese residents, especially targeting foreign crypto exchanges.
The move was a clear bid to close the loophole that remained after the May PBoC banned domestic financial institutions from offering cryptocurrency trading services.
Since then, Chinese traders have been investing in cryptocurrencies using foreign platforms.
Bitcoin prices fell more than 8% shortly after the announcement, dropping to just over $ 41,000.
“There are legal risks to individuals and organizations participating in cryptocurrencies and trading activities,” the PBoC said in a Friday notice.
He added that all Chinese working at cryptocurrency exchanges abroad will be “investigated in accordance with the law” as well as organizations that provide marketing, payment and technical support.
The PBoC said it would work with Public Safety Canada and Internet regulators to crack down on “people suspected of disrupting fiscal order.”
Despite China’s crackdown, the country remains an important global crypto market. Cryptocurrency wallets managed by users believed to be in China received $ 150 million worth of digital coins “after the United States” from January to June, according to a report by analysis provider Chainalysis.
The PBoC said: “Recently, cryptocurrency speculation has increased, disrupting economic and financial order, causing illegal and criminal activity such as gambling, illegal financing, fraud, scams and money laundering. , Seriously endangers people’s safety. “
PBoC is individually preparing to announce the official Digital RMB and is a pioneer of central banks in the region. The currency is scheduled for test run at the 2022 Winter Olympics.
Jason Guthrie, Head of Capital Markets and Digital Assets for European Asset Management Company Wisdom Tree, said: ”
State government Published this year A series of bans on energy-intensive cryptocurrency mining activities.
China expands crackdown by declaring all cryptographic activity “illegal”
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