BEIJING – Bitcoin and other cyrptocurrencies witnessed a decline in their value after China on Friday announced to ban all transactions involving digital currency.
The People’s Bank of China (PBOC) in a statement said that all financial transactions through cryptocurrencies will be deemed as illegal, a latest crackdown on the volatile currencies.
The cryptocurrencies has been suffered setbacks in the past due to Chinese regulations as the country aims at curbing money laundering and other illegal financial activities.
“Virtual currency-related business activities are illegal financial activities,” the China’s central bank said, adding that people who commit violations would be “investigated for criminal liability in accordance with the law.”
Bitcoin witnessed as much as 5.5 percent fall following the announcement, reaching $42,232 around 1000 GMT before stabilising.
The Chines bank said that in recent years trading of Bitcoin and other digital currencies had become “widespread, disrupting economic and financial order, giving rise to money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities.” This was “seriously endangering the safety of people’s assets,” the PBOC said.
Crypto mining and trading is illegal in China since 2019.
Read more: https://pakobserver.net/bitcoin-to-consume-95-68-tw-h-in-2021-80pc-of-pakistans-consumption/
