China's makes all cryptocurrency transactions illegal in blow to Bitcoin and other tokens

Authorities in China have ordered a new crackdown on all cryptocurrency mining and trading on Friday, according to a statement posted on the People’s Bank of China (PBoC) site.

China's Central Bank said all cryptocurrency transactions are illegal.

Cryptos, including Bitcoin, are not fiat currency and cannot be circulated on the market, the People’s Bank of China said on its website, adding it will ban financial institutions, payment companies, and internet platforms from facilitating crypto trading.

Bitcoin ban: These are the countries where crypto is restricted or illegal

The central bank also said it intends to establish a mechanism for early warning and stopping "hype" in crypto trading and mining activities.

Following the announcement, Bitcoin's value shed almost 5 per cent, while Ether fell by more than 8 per cent.

Cryptocurrencies started the week on a turbulent note after fears that Evergrande's troubles could lead to fallout for the Chinese and global economies, which has prompted a selloff in riskier assets.

The regulatory environment in the US is also affecting the crypto markets.


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