PBOC prefers to entirely ban crypto circulation in China

Chinese central bank cause dips in the crypto market
  • PBOC has asserted that illegal cryptocurrency transactions should be banned
  • The bank’s website claims that cryptos including Bitcoin and Tether’s circulation is prohibited
  • China’s economic planning agency deems crackdown is essential to meet carbon goals

PBOC, the Public’s Bank of China has recently announced that all crypto-related transactions are illegal in the region. The central bank believes that digital currencies should be banned. The recent statement from the bank sends a decisive signal yet on its intention to crack down on the digital assets industry. After the mid-May crash, the latest directive by the bank has become another strike on the crypto market.

PBOC wants to ban Bitcoin, Altcoin, and Stablecoin transactions

On Friday, PBOC cited on it’s website that all crypto assets including Bitcoin and Tether are illegal in the country. The central bank reminded its citizens that digital currencies like Bitcoin or any altcoin are illegal in China, thus cannot be circulated on the market. Hence, PBOC underscored that all cryptocurrency-related transactions, including services offered by foreign crypto assets exchanges to domestic residents, are outlawed financial activities.

China could also address to miners disguising their business

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The latest harsh directive hit the price of the leading crypto asset plunging by about 5.5%. Besides the news, Bloomberg also reported that the government might also respond to crypto miners. It is known that the digital assets miners prevail in their activities to stay in business. Likewise, China’s economic planning agency underlined that it is a crucial task for the country to root out cryptocurrency mining. The agency also believes that the crackdown is essential to meet carbon goals.

China’s directives made the a slightly nervous scenario

The latest directive comes as the global markets grow rapidly, concerning a debt crisis involving real estate developer China Evergrande Group.

Following the scenario, Vijay Ayyar, the head of Asia Pacific with crypto exchange Luno in Singapore, noted that while the government of China has made such similar arguments in the past, it’s slightly nervous environment for cryptocurrencies with the recent comment by the US SEC comments and overall macro environment. Ultimately, any comments of such nature will cause a sell-off in risky assets.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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