The People’s Bank of China declared illegal the use of any type of cryptocurrencies to carry out banking transactions in the country.
China stops the advance of cryptocurrencies and declares their use illegal in the country. Therefore, its use on digital platforms in the country has been prohibited. It also reported through a statement on its website that all virtual currency exchanges (bitcoin, ethereum, dogecoin, etc.) for services of foreign companies operating within the People’s Republic of China are considered outside the law. .
In the statement, the People’s Bank of China PCB establishes that cryptocurrencies such as Bitcoin Ethereum do not have the same legal status as coins in circulation. For the same reason, it was established that they will not be able to circulate as a currency of exchange.
Following the news, Bitcoin shares plunged 8%. That is to say, close to 41 thousand dollars. Other cryptocurrencies such as dogecoin were also affected by the news.
After the application of these prohibitions, the PCB will seek to prevent illegal financial activities that are carried out through cryptocurrencies. Among the measures that it will apply will be the closure of the mining and investment application, as well as cutting the payment channels and websites. “All this in order to fully safeguard the economic and financial order, and social security.”
One of the reasons why the cryptocurrency market was banned was due to excessive energy expenditure caused by mining digital currencies. According to Bloomberg magazine, the world accounted for a 46% share of the global hash rate.
Previously, China had already made bans around cryptocurrencies by banning their mining. In addition, he had already made the signal to companies and banks to stop accepting this type of assets.