The people’s bank of china claimed that “Virtual currency-related business activities are illegal financial activities,” also warning it “seriously endangers the safety of people’s assets”.This news comes with china being one of the largest cryptocurrency markets in the world where market fluctuations usually affect the global price of cryptocurrencies, in the wake of this announcement the bitcoin price fell by more than $2,000 the second lowest it’s ever been
According to the new notice, Beijing will now ban all financial institutions, payment companies and internet platforms such as Paypal and revolt from enabling cryptocurrency trading. additionally, China’s central bank is seeking to target foreign exchanges, declaring “the provision of services by overseas virtual currency exchanges to Chinese residents through the internet” to be illegal and unjust for all citizens. China has long expressed its disapproval of all cryptocurrencies due to their links to money laundering and exorbitant energy consumption in major city’s. Earlier this year, the Chinese authorities returned an old rule that forcibly forbids financial firms from actively aiding in the mining and selling of cryptocurrencies. Beijing also moved to fully clamp down on cryptocurrency mining, which uses obscene amounts of energy, and currency exchanges in the country as well as overseas. Although Beijing is fully banning Bitcoin, Ethereum and other cryptocurrencies, China is seeking to be one of the first countries to roll out its own cryptocurrency called e-yuan by next year for all citizens to have access to.
Henri Arslanian crypto leader of PWC said “While this is not a surprise as China has ‘banned’ crypto many times in the past, this time there is no ambiguity,” and “Crypto transactions and crypto services of all kind are banned in China. No room for discussion. No grey area.”This ban has caused a lot of controversy online with people claiming that it’s “Against peoples rights and demands”, but what do you think? Do you feel cryptocurrencies should be more governed or that it’s fine how it currently is?