China’s central bank has declared all cryptocurrency transactions illegal, even banning digital tokens like Bitcoin. These and other coins are not paper money and therefore cannot be distributed in the market.
As a result, the price of Bitcoin fell sharply this morning.
This morning the People's Bank of China left a message on its website stating that all cryptocurrencies, including Bitcoin and Tether, are not fiat currencies and cannot be distributed in the market. According to the entity, these currencies seriously jeopardize the security of people's assets.
a Reuters He writes that the PBOC - the People's Bank of China - will prevent financial institutions, payment companies and other internet-connected companies from facilitating cryptocurrency trading and will strengthen monitoring of the risks of such activities. In addition, it also banned foreign exchanges from providing services to mainland investors in China via the Internet.
In fact, since 2019, cryptocurrency trading has been banned in China, however, it can be accessed online through foreign exchanges.
It should be noted that mining is growing in the world. As of September 2019, China was responsible for 75% of the world's bitcoin energy use. In April 2021, that percentage was set at 46%.
Transactions 'totally prohibited by law'
This news was accompanied by a decline in the value of the most relevant cryptocurrency, Bitcoin. At nine in the morning it was worth more than 38 thousand euros, and at the moment it is 35,868 euros. [15:15], after its price was already 34,750 euros.
There is also a note from China's Economic Planning Agency warning of the country's urgency to crack down on crypto mining, and its suppression is essential in efforts to achieve carbon targets.
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