Earthquake in view in the Bitcoin market and cryptocurrencies: The Chinese Central Bank has declared on Friday that all transactions related to them are illegal in the country and must be prohibited, citing concerns about national security and social stability.
The world’s most populated nation has also stated that foreign operators are also forbidden to provide cryptocurrencies services in China.
In a joint statement, ten Chinese government agencies promised to work closely together to maintain a high-pressure’s-life ride’ on the cryptocurrencies trade in the nation.
In addition, the Chinese Central Bank has stated that cryptocurrencies, including Bitcoin and Tether, cannot be circulated on the market as they are illegal currency.
The Chinese government will resolutely repress speculation on virtual currency and its financial activities and unfair behaviour in order to safeguard the property of individuals and maintain the economic, financial and social order, said the Chinese People’s Bank in a note.
The move has already started to cause panic among some cryptocurrencies traders, dropping the price of bitcoin and many other currencies. In particular, Bitcoin is down 5.5% at the time we write this article.
China, home to some of the world’s largest cryptocurricular mining services, is therefore seriously involved in these activities. The National Development and Reform Commission stated that it was starting a national cleaning of cryptocurrencies mining, a task that it called
This is not the first time that China has declared a lifespan on cryptocurrencies activities, but so many government agencies have not cooperated in this effort so far. The global implications could be very important. In fact, according to the Cambridge Bitcoin Electiricy Consumption Index, China is responsible for over 46% of the world’s Bitcoin mining total. A significant reduction in these activities would certainly have repercussions on the cryptocurrencies world