Since 2013, China has made several attempts to hinder the acceleration of cryptocurrency. First, they banned banks in the country from using it. Then in 2017, the country banned crypto exchanges. Earlier this year they cracked down on Bitcoin mining. So what is different now?
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Now China has moved to officially ban any crypto-related transactions by both businesses and citizens. The document, which you can read the full translation of below, was released by the People’s Bank of China on the 15th but is only just now making its rounds through the media.
The language used within the document is of a serious tone and indicates that punishment may be severe for using cryptocurrency.
The translation of the document says that the Bank and relevant agencies would “severely crack down on illegal financial activities related to virtual currencies,” and that it would “seriously investigate the legal responsibilities of related legal persons, unincorporated organizations and natural persons for crimes.”
The document is signed by several government organizations including the “Central Cyberspace Administration of the People’s Bank of China.”
Many are calling this news more “FUD,” also known as fear, uncertainty and doubt, and that this is just another stern message from China about cryptocurrency that has happened several times already.
Others noted other things China has also banned that have become ultra-successful.
Regardless, the price of Bitcoin took a steep tumble for the second time this month, falling over 5%. Others, like Ethereum, have dropped 8% or more.