China Bans Cryptocurrency Trading

China is cracking down on cryptocurrencies. The central bank has declared all transactions in connection with Bitcoin and Co. to be illegal. Their courses fell significantly.

The Chinese leadership is increasing the pressure on cryptocurrencies. The state central bank made all activities related to trading cryptocurrencies illegal.

In a corresponding announcement, the state-controlled central bank explicitly mentioned the particularly popular virtual currencies Bitcoin, Tether and Ether. It is said that offenses are severely punished. At the same time, China‘s state and party leadership announced a nationwide ban on so-called crypto mining. This announcement is more symbolic because numerous Chinese parts of the country had already banned crypto mining in the past few months.

Plans for an e-yuan In response to China‘s tightening of policies, the rates of several cryptocurrencies fell. Bitcoin temporarily lost more than five percent of its value compared to the US dollar, and ether almost ten percent. Shares in companies dealing with Bitcoin and Co. also fell worldwide. The Chinese government has been working on its own electronic currency for several years. Apart from being digital, it has nothing to do with crypto money like Bitcoin. The state Chinese e-yuan is neither decentralized nor can payments be processed anonymously.

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