Friday’s notice complained that bitcoin, ethereum and other digital currencies disrupt the financial system and are used in money-laundering and other crimes.
China’s central bank on Friday declared all transactions involving bitcoin and other virtual currencies illegal, launching a campaign to curb the use of unofficial digital money.
Chinese banks were banned from handling cryptocurrencies in 2013, but the government issued a reminder this year. This indicates that the official concerns that cryptocurrency mining and trading is still going on or that the state-run financial system may be indirectly exposed to risks.
Friday’s notice complained that bitcoin, ethereum and other digital currencies disrupt the financial system and are used in money-laundering and other crimes.
“Virtual currency derivative transactions are all illegal financial activities and are strictly prohibited,” the People’s Bank of China said on its website. Promoters of cryptocurrencies say they allow for anonymity and flexibility, but Chinese regulators worry they could undermine the ruling Communist Party’s control over the financial system, saying they could help conceal criminal activity. can.
The People’s Bank of China is developing an electronic version of the country’s yuan for cashless transactions that can be tracked and controlled by Beijing.
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