Bitcoin’s value: The value of Bitcoin has plummeted after China’s central bank announced on Friday, September 24 that all cryptocurrency transactions are illegal, effectively outlawing digital tokens such as Bitcoin and Ethereum in the country.
China is one of the world’s largest cryptocurrency markets, accounting for 95 percent of all crypto mining.
“Virtual currency-related business activities are illegal financial activities,” the People’s Bank of China warned, adding that they “seriously endanger the safety of people’s assets.”
Bitcoin’s price dropped by more than $2,000 (£1,460) as a result of the announcement.
It is the latest in China’s nationwide crackdown on what it sees as a means of laundering money and speculative investment.
Trading in cryptocurrency has been officially prohibited in China since 2019, but it has continued online via foreign exchanges.
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In May, Chinese state institutions warned buyers that they would have no recourse if they continued to trade Bitcoin and other currencies online, as government officials vowed to put more pressure on the industry.
Then, in June, it instructed banks and payment platforms to stop facilitating transactions and issued bans on “mining” the currencies, which is the practice of using powerful computers to create new coins. In September 2019, China accounted for 75% of the world’s Bitcoin energy consumption. By April 2021, that figure had dropped to 46%.
The statement issued on Friday makes it clear that those who engage in “illegal financial activities” are committing a crime and will be prosecuted.
The statement also stated that foreign websites offering such services to Chinese citizens online is illegal.
Bitcoin’s value
