China's Central Bank Declares Cryptocurrency Transactions Illegal

China continues to aggressively fight cryptocurrencies. The People's Bank of China said that cryptocurrency

transactions are illegal, and called for an official ban. He referred to concerns about national security and the safety of residents' assets.

The bank claims that cryptocurrencies are notfiat currency and cannot be in circulation. Any transactions with cryptocurrencies are now considered criminal financial activity. The bank has ordered financial and internet companies to stop allowing cryptocurrency transactions on their platforms. Foreign exchanges are also prohibited from providing services to Chinese residents.

The rise in cryptocurrencies has sparked an increase in money laundering,illegal fundraising, fraud, pyramid schemes and other illegal and criminal activities, ”the bank said. Anyone who breaks the rules will be subject to a “criminal investigation”.

Several departments in the country work togetherunder the leadership of the National Development and Reform Commission to finally put an end to cryptocurrency mining in the country. The local government of Sichuan is known to have banned cryptocurrency mining in June, forcing some miners to leave the country.

Source: bloomberg, techcrunch

</ p>