China said that all crypto transactions, including mining, are illegal in the Asian nation as part of its crackdown on cryptocurrencies.
UDAPEST, HUNGARY - SEPTEMBER 22: A detail of the statue of Satoshi Nakamoto, a presumed pseudonym used by the inventor of Bitcoin, which is displayed in Graphisoft Park on September 22, 2021 in Budapest, Hungary. The statue's creators, Reka Gergely and Tamas Gilly, used anonymized facial features, as Nakamoto's true identify remains unconfirmed.
The latest announcement from China has pushed down the price of the top cryptocurrency, Bitcoin, once again--as well as other smaller counterparts.
On June 21, China's staunch crackdown on both crypto trading and mining reached the international stage after it crashed the prices of leading digital coins like Ethereum and Bitcoin.
On the other hand, billionaire Elon Musk attributed the crackdown of China on crypto mining to be one of the primary reasons why Bitcoin has evolved to become greener. Musk further noted that the leading crypto is now using more clean energy after mining has left the Chinese country.
That said, China's move to go after crypto transactions leaves a significant effect on the digital coins--from their prices to their carbon emissions.
China vs. All Crypto Transactions
As per CNBC, the Central Bank of China once again took a swipe on Bitcoin, and called all crypto-related transactions to be "illegal." The Asian country went on to launch a harsh crackdown against digital currencies.
The People's Bank of China also noted on its website that "token issuance and derivatives for virtual currencies are strictly prohibited." Not just that, the central bank added that even crypto exchanges from outside China to the mainland are considered illegal as well.
On top of that, even crypto transactions using the internet of local residents fall under "illegal financial activity." Even Chinese working for crypto exchanges outside the country is subject to scrutiny. All of these rules of the China central bank are part of the prevailing crackdown of the Asian country against cryptos.
What's more, the Chinese bank highlighted its previous stand, saying that institutions, including payment firms, internet companies, and financial businesses, in the country are not allowed to offer crypto-related services.
China Crypto Crack Down
According to Reuters, the rules of the central bank of the country against crypto transactions were put in place following the crackdown that the State Council of China launched in May.
The People's Bank of China went on to warn that the government will "resolutely clamp down on virtual currency speculation, and related financial activities." The move is said to keep social, economic, and financial order in the country.
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Crypto Prices Go Down
After the bold statement coming from the central bank of China, the price of the largest and leading crypto, Bitcoin, tumbled to a steep 6% at $42,239 in the last 24 hours, according to Fortune.
Meanwhile, other virtual currencies also fell after the China statement, which has been the case with smaller cryptos. For instance, Ethereum lost 10% of its price, whereas XRP faced the same exact fate.
Aside from crypto prices, firms providing services for virtual currencies also figured in a slump in their stock prices.
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Written by Teejay Boris
