China has intensified the crackdown on cryptocurrency trading, vowing to root out "illegal" activities in the trading of Bitcoin and other virtual currencies, and has imposed a nationwide ban on cryptocurrency mining.
China's State Council has pledged to crack down on Bitcoin mining and trading by May as part of its hedging efforts.
Ten Chinese government agencies, including the Bank of China (PBOC), as well as banking, securities and currency regulators, said in a joint statement that they will work closely to maintain a "high-pressure" crackdown on the speculative trading of cryptocurrencies.
The PBOC said that cryptocurrencies should not be circulating in the markets as traditional currencies and that overseas exchanges are prohibited from providing services to mainland investors over the internet. The bank also banned financial institutions, payment companies, and internet companies from facilitating cryptocurrency trading.
The PBOC announced on its website that the government will "resolutely reduce virtual currency speculation and related financial activities and inappropriate behavior in order to protect people's property and maintain economic, financial and social order."
The National Development and Reform Commission has announced that it has launched a nationwide crackdown on cryptocurrency mining. Earlier restrictions were issued by local governments.
With the effect of China's decision, Bitcoin and Ether, the largest assets in the crypto money markets, lost value by 2.48% and 6.44 percent, respectively.
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