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Business News of Saturday, 25 September 2021

Source: punchng.com

China moves to ban cryptocurrency

The photo used to illustrate the story The photo used to illustrate the story

China’s central bank has said that all cryptocurrency related transactions are illegal in the country and are banned.

According to TechCrunch, the bank disclosed this on Friday, citing concerns around national security and safety on assets.The bank also banned foreign exchanges from providing services to users in the country.

Ten Chinese government agencies have vowed to maintain a high-pressure crackdown on trading of cryptocurrencies in the nation.In a statement, the People’s Bank of China banned internet, financial and payment companies from facilitating cryptocurrency trading on their platforms.China’s central bank said cryptocurrencies, including Bitcoin and Tether, could not be distributed in the market since they were not fiat currency.

The bank added that the surge in usage of cryptocurrencies had disrupted economic and financial order, and prompted the spread of money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities.

The bank said, “Offenders will be investigated for criminal liability in accordance with the law.“The Chinese government will resolutely clamp down on virtual currency speculation, and related financial activities and misbehaviour in order to safeguard people’s properties and maintain economic, financial and social order.”This is not the first time China has issued a crackdown on cryptocurrency-related activities.

Recently, regulators in China began a crackdown on bitcoin mining, causing bitcoin prices to crash.At the time of filing this report, BTC had shed 5.28 per cent of its price, falling from $45,080.49 to $41,418.11.