Central bank of China has declared all the Cryptocurrency transactions illegal on September 23, 2021. The global values of cryptocurrencies including Bitcoin have massively fluctuated in during 2020-2021 partly due to Chinese regulations that sought to prevent speculation and money laundering.
According to People’s Bank of China (PBOC), Virtual currency-related business activities are illegal financial activities. Offenders will be “investigated for criminal liability” in accordance with the law.
Chinese notice has banned all the related financial activities involving cryptocurrencies like transactions involving virtual currency derivatives, selling tokens, trading crypto, and illegal fundraising.
According to People’s Bank of China, trading of Bitcoin and other virtual currencies had become widespread and are disrupting economic & financial order. It also gave rise to money laundering, fraud, illegal fund-raising, pyramid schemes and other illegal & criminal activities. These disruptions were seriously endangering the safety of assets of the people. Considering these facts, China has declared all the Cryptocurrency transactions illegal.
