China declares all cryptocurrency transactions illegal, Bitcoin price plummets

midian182

Posts: 7,143   +63
Staff member
What just happened? The Chinese government's long-running battle against crypto took a drastic turn earlier today when the country's central bank said all cryptocurrency-related transactions are illegal and must be banned. The announcement has seen the price of BTC plummet from $45,200 to $42,675 in the space of two hours.

The People's Bank of China on its website wrote that all cryptocurrencies, including Bitcoin and Tether, are not fiat currency and cannot be circulated on the market. Reuters reports that the PBOC will bar financial institutions, payment companies, and internet firms from facilitating cryptocurrency trading, and will strengthen monitoring of risks from such activities. It also banned overseas exchanges from providing services to mainland investors in China via the internet.

Transactions are "resolutely banned in accordance with the law," the PBOC said in its statement.

Elsewhere, China's economic planning agency said it is urgent that the country root out crypto mining and the crackdown is essential in efforts to meet carbon goals.

It's been noted that the PBOC originally released the updated guidance earlier this month but posted it online today.

It was back in May that a Chinese State Council committee led by Vice Premier Liu He announced a crackdown on virtual currencies as part of efforts to curb financial risks, crashing Bitcoin's price and causing mining businesses to cease operations. It also led to GPU prices falling in the nation and crypto miners selling off their graphics cards. ASRock at the time said the lower demand was dropping graphics card prices globally. It's possible that making all cryptocurrency transactions illegal in a country that accounts for up to 70% of the world's crypto supply will once again affect graphics card prices on a global scale.

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dangh

Posts: 277   +385
China is only doing this because they are launching their own digital currency to monitor the transactions of all their citizens.
not much will change for Chinese citizens anyway, but there is a chance of some normality on gaming market, and maybe some serious decrease in drug lords pockets;)
Chinese citizens should simply repeat history and do same thing they did 80 years ago. Revolt and get back control.
 

NightAntilli

Posts: 774   +973
The announcement has seen the price of BTC plummet from $45,200 to $42,675 in the space of two hours.

"Plummet" :D :D :D :D :D :D :D

If you lost 3.5% of everything you owned overnight you'd be pretty bummed. For most financial instruments that would be seen as a pretty catestrophic fall. Crypto's volatility seems to be accepted though.
September is normally a red month for crypto. Two digit losses are normal. Aside from that, in crypto, and even for Bitcoin, a 50% drop is just another Tuesday. It's par for the course, when the increase from a year go, even AFTER the so-called "plummet", is +300%.

As long as BTC holds support between 38k-42k, the market is still bullish.
 

wiyosaya

Posts: 6,518   +4,904
Hmmm, A major world market declares crapto transactions illegal. The writing is on the wall.
 

wiyosaya

Posts: 6,518   +4,904
Bad news for Chinese, the whole point of Bitcoin is to offer a solution to bypass the stupid limitations imposed by government and central banks.
Unfortunately, illiterate people don't understand this.
IMO, it has nothing to do with illiteracy and everything to do with government control. Stupid people don't get this. :rolleyes: