Please ensure Javascript is enabled for purposes of website accessibility
China Says All Crypto Transactions Illegal; Bitcoin Tumbles
gvw_ap_news
By Associated Press
Published 3 years ago on
September 24, 2021

Share

BEIJING — China’s central bank on Friday declared all transactions involving Bitcoin and other virtual currencies illegal, stepping up a campaign to block use of unofficial digital money.

Friday’s notice complained Bitcoin, Ethereum and other digital currencies disrupt the financial system and are used in money-laundering and other crimes.

“Virtual currency derivative transactions are all illegal financial activities and are strictly prohibited,” the People’s Bank of China said on its website.

Crypto Prices Fall After China’s Announcement

The price of Bitcoin fell more than 9%, to $41,085, in the hours after the announcement, as did most other crypto tokens. Ethereum skidded almost 10%, falling from $3,100 to around $2,800.

Chinese banks were banned from handling cryptocurrencies in 2013, but the government issued a reminder this year. That reflected official concern cryptocurrency mining and trading might still be going on or the state-run financial system might be indirectly exposed to risks.

Promoters of cryptocurrencies say they allow anonymity and flexibility, but Chinese regulators worry they might weaken the ruling Communist Party’s control over the financial system and say they might help to conceal criminal activity.

The People’s Bank of China is developing an electronic version of the country’s yuan for cashless transactions that can be tracked and controlled by Beijing.

Regulators Warn Cryptocurrencies Need More Oversight

Regulators in other countries have increasingly warned that cryptocurrencies need greater oversight. In the U.S., Gary Gensler, the chairman of the Securities and Exchange Commission, has said that investors need more protection in the cryptocurrency market, which he called “rife with fraud, scams and abuse” and compared to the “Wild West.”

The SEC has won dozens of cases against crypto fraudsters, but Gensler says the agency needs Congress to give it more authority and funding to adequately regulate the market.

Regulators in China have also been trying to rein in cryptocurrency mining, an energy-intensive process whereby specialized computers generate digital currencies. As a result, miners have been moving operations out of China.

Two years ago, China alone accounted for around three-quarters of all the electricity used for crypto mining, by far the most in the world, according to the Cambridge Bitcoin Electricity Consumption index. By April of this year, before the latest crackdown, China’s share had fallen back to 46%. That still towers over the No. 2 country, the United States, at less than 17%.

RELATED TOPICS:

DON'T MISS

Paul McCartney Becomes Britain’s First Billionaire Musician

DON'T MISS

California Cracked Down After a Crash Killed 13 Farmworkers. Why Are Workers Still Dying on the Road?

DON'T MISS

These Rare Chainsaws Are Worth Big Bucks to Collectors

DON'T MISS

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

DON'T MISS

Opinion: How Urban Renewal Ruined Everything

DON'T MISS

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

DON'T MISS

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

DON'T MISS

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

DON'T MISS

Where Do State Lawmakers Stand on War in Gaza, Campus Protests?

DON'T MISS

High-Speed Rail Now Working to Extend Valley Line to 171 Miles

UP NEXT

The Latest | Dozens of Israeli Protesters Attack a Truck in an Apparent Effort to Block Gaza Aid

UP NEXT

Israel Denies Genocide Charges, Asserts Efforts to Protect Gaza Civilians

UP NEXT

Massive Ukrainian Drone Attack on Crimea Causes Power Cutoffs in Sevastopol

UP NEXT

Report: Child Migrant Arrivals in Italian City Double

UP NEXT

Stock Market Today: Wall Street Edges Back From Records After Dow Briefly Tops 40,000

UP NEXT

Palestinian Voices Echo Painful Gaza War History as Nakba is Remembered

UP NEXT

Rep. Matt Gaetz Echoes Proud Boys’ Language at Trump’s Court Appearance

UP NEXT

Ukraine Says It Has Checked Russia’s Offensive in a Key Town, But Moscow Says It Will Keep Pushing

UP NEXT

Slovak Authorities Charge ‘Lone Wolf’ in Assassination Attempt on Prime Minister

UP NEXT

US Military Says Gaza Pier Project is Complete and Aid Will Soon Flow as Israel-Hamas War Rages

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

2 days ago

Opinion: How Urban Renewal Ruined Everything

2 days ago

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

2 days ago

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

2 days ago

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

2 days ago

Where Do State Lawmakers Stand on War in Gaza, Campus Protests?

2 days ago

High-Speed Rail Now Working to Extend Valley Line to 171 Miles

2 days ago

Beautify Fresno Combines Dog Adoption, Litter Removal in Unique Saturday Event

2 days ago

Bulldogs’ Gilmore Named MW Softball Pitcher of the Year

2 days ago

The Latest | Dozens of Israeli Protesters Attack a Truck in an Apparent Effort to Block Gaza Aid

2 days ago

Paul McCartney Becomes Britain’s First Billionaire Musician

LONDON — Paul McCartney is a billionaire Beatle. According to figures released Friday, the former member of the Fab Four is the first Britis...

1 day ago

1 day ago

Paul McCartney Becomes Britain’s First Billionaire Musician

2 days ago

California Cracked Down After a Crash Killed 13 Farmworkers. Why Are Workers Still Dying on the Road?

2 days ago

These Rare Chainsaws Are Worth Big Bucks to Collectors

2 days ago

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

2 days ago

Opinion: How Urban Renewal Ruined Everything

2 days ago

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

2 days ago

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

2 days ago

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

MENU

CONNECT WITH US

Search

Send this to a friend