China turns screws in crypto crackdown

A Chinese flag is visible among representations of Bitcoin and other cryptocurrencies in this illustrative photo taken on June 2, 2021. REUTERS / Florence Lo / Illustration / File Photo

SHANGHAI, Sept.24 (Reuters) – China on Friday stepped up its crackdown on cryptocurrency trading, promising to root out “illegal” activity in bitcoin and other virtual currency trading and to ban it on a scale national cryptocurrency mining.

China’s State Council, or cabinet, pledged in May to crack down on bitcoin mining and trading as part of efforts to counter financial risks.

Ten Chinese government agencies, including the central bank as well as banking, securities and foreign exchange regulators, said in a joint statement that they would work closely to maintain a “high pressure” crackdown on speculative trading in cryptocurrencies.

The People’s Bank of China has stated that cryptocurrencies should not circulate in the markets as traditional currencies, and foreign exchanges are not allowed to provide services to mainland investors via the internet.

The PBOC has also banned financial institutions, payment companies, and internet companies from facilitating cryptocurrency trading.

The government “will resolutely crack down on virtual currency speculation, financial activities and inappropriate behavior in order to protect people’s property and maintain economic, financial and social order,” the People’s Bank of China said in a released statement. on its website.

The National Development and Reform Commission said it was launching a nationwide crackdown on cryptocurrency mining. The previous restrictions were issued by local governments.

Bitcoin, the world’s largest cryptocurrency, fell 5% after the announcement of the PBOC, which had previously fallen by around 1%.

Report from the SHANGHAI newsroom; edited by Jason Neely and Nick Macfie

Our Standards: Thomson Reuters Trust Principles.

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