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China declares all crypto-currency transactions illegal

Martin Everson

Martin Everson

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#1
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https://www.bbc.com/news/technology-58678907
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China's central bank has announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin.

"Virtual currency-related business activities are illegal financial activities," the People's Bank of China said, warning it "seriously endangers the safety of people's assets".

China is one of the world's largest crypto-currency markets.

Fluctuations there often impact the global price of crypto-currencies.

The price of Bitcoin fell by more than $2,000 (£1,460) in the wake of the Chinese announcement.

It is the latest in China's national crackdown on what it sees as a volatile, speculative investment at best - and a way to launder money at worst.

Trading crypto-currency has officially been banned in China since 2019, but has continued online through foreign exchanges.
However, there has been a significant crackdown this year.

In May, Chinese state intuitions warned buyers they would have no protection for continuing to trade Bitcoin and other currencies online, as government officials vowed to increase pressure on the industry.

In June, it told banks and payment platforms to stop facilitating transactions and issued bans on "mining" the currencies - the trade of using powerful computers to make new coins.

But Friday's announcement is the clearest indication yet that China wants to shut down crypto-currency trading in all its forms.
The statement makes clear that those who are involved in "illegal financial activities" are committing a crime and will be prosecuted.

And foreign websites providing such services to Chinese citizens online is also an illegal activity, it said.

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#3
Martin Everson said:
https://www.bbc.com/news/technology-58678907
----- quote start

China's central bank has announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin.

"Virtual currency-related business activities are illegal financial activities," the People's Bank of China said, warning it "seriously endangers the safety of people's assets".

China is one of the world's largest crypto-currency markets.

Fluctuations there often impact the global price of crypto-currencies.

The price of Bitcoin fell by more than $2,000 (£1,460) in the wake of the Chinese announcement.

It is the latest in China's national crackdown on what it sees as a volatile, speculative investment at best - and a way to launder money at worst.

Trading crypto-currency has officially been banned in China since 2019, but has continued online through foreign exchanges.
However, there has been a significant crackdown this year.

In May, Chinese state intuitions warned buyers they would have no protection for continuing to trade Bitcoin and other currencies online, as government officials vowed to increase pressure on the industry.

In June, it told banks and payment platforms to stop facilitating transactions and issued bans on "mining" the currencies - the trade of using powerful computers to make new coins.

But Friday's announcement is the clearest indication yet that China wants to shut down crypto-currency trading in all its forms.
The statement makes clear that those who are involved in "illegal financial activities" are committing a crime and will be prosecuted.

And foreign websites providing such services to Chinese citizens online is also an illegal activity, it said.

---- quote end
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Lolz the same news again and again and again. ;)
 
#4
holywater said:
Anyway hope cryptocurrency will not be blocked by other countries.
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I would say other countries will watch what happens in China now - particularly those with strict currency controls.

Get ready for further announcements ;).
 
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#5
Martin Everson said:
I would say other countries will watch what happens in China now - particularly those with strict currency controls.

Get ready for further announcements ;).
Click to expand...
Yep, bifurcation. Nigeria for example is a prime case for sure.
Meanwhile a few north american tycoons like o'leary move into the space. Twitter just being the latest.
 
#6
I think its a coordinated news to accumulate more coins by whales as they always do.
My chinese friends don't even care about that news.No movements at all from them.
 
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#8

Why the latest ban isn't that bad​

But there was one big sign that investors would eventually set aside China's latest announcement, Jake Wujastyk, chief market analyst at TrendSpider, told Insider on Friday.

"If you look at the low of bitcoin on September 20 [around $36,900], we didn't even hit that low" on Friday, he said. Bitcoin "should have broken to new lows and it didn't - at least not yet," said Wujastyk. "Right now [the news] is moving the market but over the longer term, it's not going to make a huge difference... China has been cracking down on a lot of things lately."

China in recent months has been imposing restrictions and rule changes on companies ranging from technology makers to education services providers. It's part of a campaign to reform business and social practices and prevent what it sees as security risks from large companies listing securities in the US. President Xi Jinping has also touted a "common prosperity" campaign, targeting China's widening wealth disparities.

Friday's move, "seems to us to be a reaction to what news [China] had earlier this week with Evergrande," Chris Kline, COO and co-founder of Bitcoin IRA, told Insider. He was referring to the potential collapse of China's second-largest property developer that's facing default on $309 billion in liabilities.

"What happened with Evergrande has put shame on the state-controlled economy. I would expect to see more clamping down and regulatory action. Obviously, bitcoin was the first target," said Kline, whose fintech platform allows clients to invest in cryptocurrencies using retirement funds. Overall, the crypto-transactions announcement is "not surprising or shocking to us," he said.
Click to expand...
 
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#11
everyone who has the power to influence price of BTC is in BTC and obviously using it for his own benefit - including Chinese government
big gestures like this ban are just bites of a flea to a monster that cannot be stopped - those who decide are already in BTC themselves
 
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#12
Yeah it was insane as the news came yesterday Bitcoin jumped from 45K to 40K and slowly rise again to 42K.

I don't believe this will have an impact on Bitcoin or crypto generally speaking, it is here to stay, one way or another.
 
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#13
Martin Everson said:
I would say other countries will watch what happens in China now - particularly those with strict currency controls.

Get ready for further announcements ;).
Click to expand...
One can use this phrase every day of any year, applied to any country, and it'll still remain accurate enough thanks to its vagueness.

There're many countries that've failed or succeeded in some things, but other countries would still do wrong things.
 
#14
AdvancedGene8320 said:
One can use this phrase every day of any year, applied to any country, and it'll still remain accurate enough thanks to its vagueness.

There're many countries that've failed or succeeded in some things, but other countries would still do wrong things.
Click to expand...

Thanks for your input.
 
#20
JackAlabama said:
are they running a "regtech" pump and dump scheme here or what? ;)
Click to expand...
They live in year 2200, we can’t understand smi(&%
 
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