In a major blow to the crypto ecosystem, China announced that all transactions of cryptocurrencies are now illegal. The country vowed to clamp down on illicit activities involving digital currencies. Basically, this means China does not recognize cryptos like $BTC.X and $ETH.X as legal tender.
To underscore its position, The People’s Bank of China published a list of forbidden activities involving digital assets. 💀 For example, overseas crypto exchanges will be blocked from providing services to Chinese residents through the internet. China’s highest state-planning body, the NDRC, posted a separate statement on “Rectifying Virtual Currency Mining” — the statement explains that the country will not authorize permits for new crypto mining projects and existing ones will shut down.
According to the notice, banning new virtual currency mining projects will be regarded as a criterion for assessing government performance in saving energy. These announcements are the latest in a series of strict measures from China on cryptocurrencies. The news added another big blow to the already-wounded crypto market, which was trying to recover from Evergrande’s impact.
$BTC.X fell by nearly $2,000 and traded around $42,000 today. $ETH.X dropped below $3,000, and other major cryptocurrencies ended in the red. 💔
While the news has shaken the crypto industry, some folks are mocking China for its anti-crypto stance. Senator Pat Toomey (R-PA) believes that this is a great opportunity for the U.S.