China, central bank declares cryptocurrency transactions illegal

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September 24, 2021 China's central bank (PBOC) has renewed its tough approach on Bitcoin and other cryptocurrencies, calling

digital currency

, anticipating that there will be a firm crackdown on the markets, reads a note from the institute.  

The website of the People's Bank of China, in the note, specifies that cryptocurrencies "

tender and cannot be distributed on the market as money". Additionally, virtual currency trading and transactions are termed "illegal financial activities and are strictly prohibited".

In recent years, transactions in bitcoin and other cryptocurrencies "have prevailed, disrupting the economic and financial order, favoring

laundering, illegal fund raising, fraud, pyramid schemes and other illegal and criminal activities" and putting "the

of people's

at serious risk

".

In accordance with the decision of the Central Committee of the Communist Party and the government, the Central Bank has prohibited "financial institutions from developing and participating in activities related to virtual currency, and domestic transactions", as well as "the

".

The decision comes at the end of a progressive Central Bank campaign against cryptocurrencies which in recent months has seen the closure of mining activities to obtain virtual currencies in all provinces and subsequently many Chinese players have transferred their activities to other countries .