In China, the central bank has declared all cryptocurrency transactions illegal. China has pledged to root out illegal activity for both Bitcoin and other cryptos and ban mining in the country. At the same time, the price of BTC and ETH fell on Friday after the decision taken by the Chinese government.
CHINA BANS CRYPTOCURRENCY TRANSACTIONS
In a joint statement, the central bank, along with banking, stock exchange, and foreign exchange regulators, said they were working together to maintain a high-pressure crackdown on speculative activity in virtual currencies.
For the People’s Bank of China, cryptos should not circulate in the markets as a traditional currency. In a statement, the Central Bank of China clarified that “business activities related to virtual currencies are illegal financial activities.” They “seriously challenged the security of people’s assets,” she adds.
China’s decision has affected the price of cryptocurrencies. Over 24 hours, the price of BTC fell more than 3%, to $ 42,239. Meanwhile, ETH also fell 7% to $ 2,860.
For Timo Emden, an independent specialist analyst, the Chinese government’s decision “caught investors off guard; however, it should come as no surprise that China continues to be tough on cryptocurrencies. “
The virtual currency market often experiences violent movements. In 2 months, the price of BTC has fallen from around $ 10,000 in September 2020 to nearly $ 65,000 in April 2021. In June, it fell to less than $ 30,000.
Meanwhile, come discover the metaverse world of Next Earth based on the NFT, another cryptocurrency.
