Chinese Central Bank Declares All Crypto Transactions Illegal

Chinese Central Bank Declares All Crypto Transactions Illegal. All acts related to cryptocurrencies are illegal, the Chinese central bank has stated.

 

Owning and trading crypto coins has been banned in China for some time, but according to the People’s Bank of China (PBOC), foreign companies cannot carry out crypto transactions for Chinese people.

PBOC will ban financial institutions, payment processors and internet companies from allowing the trade in cryptocurrencies such as bitcoin. The bank wants to monitor this more closely. China has also been hunting crypto miners for some time.

These are small companies that solve a set of mathematical problems with fast computers in order to process payments in crypto coins. For their effort, they then get parts of that cryptocurrency.

The announcement caused a fall in the price of major digital currencies, such as bitcoin. That lost about 4 percent to $ 42,900 each, converted more than EUR 36,500. Ether and Litecoin lost about 8 percent.