The Chinese government has tightened its suppression of cryptocurrency transactions again. The Central Bank of China – People’s Bank of China (PBOC) stated that all transactions related to cryptocurrencies are illegal.
On Friday afternoon, the People’s Bank of China (PBOC) released a statement, pointing out that virtual currencies like Bitcoin, Ether, Tether and other virtual currencies do not have the same legal status as legal tender, are legally non-refundable and should therefore not be traded in the market as circulating currencies.
All crypto-related transactions, including services provided by offshore exchanges to domestic residents, are illegal financial activities, the PBOC said in the statement.
Everything offVerse exchanges are prohibited from offering services to domestic investors and severely punishing illegal financing activities related to cryptocurrencies. Affiliated businesses such as virtual currency exchanges, brokerage services, pricing, token issuance and virtual currency derivatives are strictly prohibited and criminal liability will be pursued.
The People’s Bank of China notice mentioned that it will coordinate with various domestic departments to implement a comprehensive monitoring mechanism from central government to local areas and improve information sharing and rapid response mechanism.
The Chinese government said the government is committed to building a multi-dimensional and tiered risk prevention and management system, including the following keynotes:
- Financial institutions and non-bank payment institutions do not provide services for business activities related to virtual currencies
- Strengthening Internet information content management and access to virtual currencies.
- Strengthening the registration and advertising management of market units related to virtual currency.
- Crackdown on illegal financial activity related to virtual currency.
- Criminal activity with virtual currencies is cracked down on.
- Strengthening the self-discipline management in the industry.
China reaffirms that cryptocurrency-related activities are illegal financial activities that disrupt the economic and financial order and are prone to gambling, illegal fundraising, fraud, pyramid schemes, money laundering and other illegal and criminal activities that affect the safety of. seriously endanger the property of the people.
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