China declares all crypto-currency transactions illegal and start a war on cryptocurrencies. It’s not just for Bitcoin, and all trading activities using the virtual currency are now considered illegal finance operations.
All cryptocurrency transactions to be prosecuted in China
This was made official by the People’s Bank of China, stating “it poses a significant risk to people’s assets.”
This development had an impact on the cryptocurrency market as a whole since most transactions are completed there. So much it affects that there has been a new drop-in Bitcoin after such announcement, $2,000 less.
Cryptocurrency trading has been officially banned in China since 2019, but they have been using foreign exchanges ever since. This year they have already suffered two blows:
- In May they warned buyers that they would have no protection to continue trading Bitcoin.
- In June they warned that they would stop facilitating cryptocurrency transactions and issued bans on mining coins.
Now the threat goes further, anyone doing anything with cryptocurrencies will be committing a crime and will be prosecuted, and that goes for foreign websites that provide services to Chinese citizens.
Country was very attractive to miners due to cheap electricity and affordable hardware many blame Chinese mining for the global shortage of powerful graphics cards. In 2019, China accounted for 75% of the world’s Bitcoin power usage, in April this year it dropped to 46%.
