China’s central bank declares all cryptocurrency transactions illegal

China’s central bank declares all cryptocurrency transactions illegal- Bitcoin tumbles.

China’s central bank today, Friday, September 24,  declared all transactions involving Bitcoin and other virtual currencies illegal, in the latest move in its campaign to block the use of unofficial digital money.

Friday’s notice complained Bitcoin, Ethereum and other digital currencies disrupt the financial system and are used in money-laundering and other crimes.

“Virtual currency derivative transactions are all illegal financial activities and are strictly prohibited,” the People’s Bank of China said on its website.

Bitcoin lost 9% of its value, falling to $41,085 in the hours after the announcement, other crypto tokens took the same route down. Ethereum fell slightly more, losing 10% of its value as it fell from $3,100 to around $2,800.

Chinese banks were actually banned from handling cryptocurrencies in 2013, but the government issued a reminder this year. That reflected official concern cryptocurrency mining and trading might still be going on or the state-run financial system might be indirectly exposed to risks.

Promoters of cryptocurrencies say they allow anonymity and flexibility, but Chinese regulators worry they might weaken the ruling Communist Party’s control over the financial system and say they are concerned the digital currency will help to conceal criminal activity.

The People’s Bank of China is developing an electronic version of the country’s yuan for cashless transactions that can be tracked and totally controlled by Beijing.

Regulators in other countries have increasingly warned that cryptocurrencies need greater oversight. In the U.S., Gary Gensler, the chairman of the Securities and Exchange Commission, ( SEC), has said that investors need more protection in the cryptocurrency market, which he called “rife with fraud, scams and abuse” and compared to the “Wild West.”

The SEC has won dozens of cases against crypto fraudsters, but Gensler says the agency needs Congress to give it more authority and funding to adequately regulate the market.

Thank you for taking the time to read this article, do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.