The Chinese authorities as soon as once more stepped up its suppression of cryptocurrency transactions. The Chinese language Central Bank- People’s Bank of China (PBOC) stated that all cryptocurrency-related transactions are illegal.
On Friday afternoon, The People’s Bank of China (PBOC) released a statement and pointed out that virtual currencies corresponding to Bitcoin, Ether, Tether, and other virtual currencies don’t enjoy the identical authorized standing as authorized tender, should not legally be repayable, thus should not be traded as circulating currencies in the market.
All crypto-related transactions, including services provided by offshore exchanges to domestic residents, are illicit financial actions, the PBOC said in the statement.
All overseas exchanges must not provide services to home investors and severely punish illegal financing actions associated to cryptocurrencies. Related businesses corresponding to digital currency trade enterprise, middleman providers, pricing activities, issuance of tokens and digital currency derivatives are strictly prohibited, and criminal responsibility will be pursued.
The notice from the Folks’ Bank of China talked about that it will coordinate with various home departments to conduct a complete monitoring mechanism from the central government to local territories and enhance the information sharing and rapid response mechanism.
The Chinese authorities mentioned the administration is dedicated to building multi-dimensional and multi-level risk prevention and handling system, including the following keynotes:
- Monetary institutions and non-bank cost institutions shall not present providers for digital currency-related enterprise actions
- Strengthen the management of Internet information content material and entry associated with the digital forex.
- Strengthen the registration and promoting the administration of market entities associated with the digital forex.
- Severely crackdown on unlawful monetary actions associated to virtual currencies.
- Severely crackdown on prison actions involving digital currencies.
- Strengthen business self-discipline administration.
China reiterates that actions related to cryptocurrency are illegal financial actions, disrupting financial and monetary order, and are vulnerable to playing, unlawful fund-raising, fraud, pyramid schemes, cash laundering, and different illegal and criminal actions, which severely endanger the safety of the individuals’ property.