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China Labels all Digital Currency Activities Illegal

China Labels all Digital Currency Activities Illegal

(24 September 2021 - China) China’s central bank announced a clampdown on cryptocurrency trading on Friday, calling all digital currency activities illegal, and vowed to crack down on the sector.

In a Q&A posted to the People's Bank of China (PBOC) website, the central bank said services offering trading, order matching, token issuance, and derivatives for virtual currencies are strictly prohibited.

CNBC translates the document as stating: “Overseas virtual currency exchanges that use the internet to odder services to domestic residents is also considered illegal financial activity […] Financial institutions and non-bank payment institutions cannot offer services to activities and operation related to virtual currencies.”

Earlier this month China turned its sights on cryptocurrency miners, with the National Development Reform Commission targeting those who attempt to disguise themselves as data researchers or storage facilities.

In July this year, the PBOC shut down a Beijing-based software firm because of its suspected involvement with crypto trading.

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