Crypto Shock as China Imposes Ban

China sent shock waves through global markets on Friday after its central bank issued a shock statement that said all cryptocurrency-related transactions are illegal and must be banned, Sharecafe reported. It was the strongest signal from the country of its determination to crack down on the industry, even though it is working on its own cryptocurrency. The surprise announcement and the way it was slipped out on Friday on the PBOC website, with no minister’s name attached, also raised eyebrows. It saw crypto investors in China and especially Hong Kong hurry to try and move their investments offshore and out of sight of the Chinese government. The impact of the statement from the People’s Bank of China (PBOC), though, didn’t spill over into non-crypto markets. All cryptocurrencies, including Bitcoin, Tether and Ethereum, are not fiat currency and cannot be circulated on the market, the PBOC said in a posting on its website on Friday. All crypto-related transactions, including services provided by offshore exchanges to domestic residents, are illicit financial activities, it said. In a Q&A posted to its website, the People’s Bank of China (PBOC) said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services in mainland China are also illegal, the PBOC said. Read more.

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