Technology
China declares cryptocurrency transactions illegal, causing the price of bitcoin to fall.
China's central bank said that all cryptocurrency transactions are unlawful, strengthening the country's stance against digital competitors to government-issued money.
According to the People's Bank of China, the new warning was issued to further avoid the dangers associated with cryptocurrency trading and to safeguard national security and social stability.
Following the revelation, the price of bitcoin dropped by up to 5%.
The central bank stated that cryptocurrencies, such as bitcoin, ether, and tether, are issued by nonmonetary authority, employ encryption technology, and exist in digital form, and should not be circulated or used in the market as currencies.
It also stated that it is prohibited for offshore exchanges to give services to Chinese people over the internet.
Many years ago, China prohibited cryptocurrency exchanges from operating within its borders, but individuals in the nation have persisted to discover methods to trade bitcoin and other digital currencies over-the-counter or through peer-to-peer transfers.
A strong Chinese super regulator promised to tighten down on bitcoin trade and energy-intensive mining, contributing to bitcoin's price drop. Financial regulators in the nation have also been more stringent on banks and payment providers, ordering them in June to take a more active role in filtering out crypto-related activities.
