Why is bitcoin taking a hit as China declares all cryptocurrency transactions illegal?

Bitcoin takes a hit as China declares all cryptocurrency transactions illegal The decision was made "in order to safeguard people's properties and maintain economic, financial and social order," the People's Bank of China has said. Inside one of the nation's largest cryptocurrency mines July 5, 202105:27

Will China shut down crypto-currency trading?

But Friday's announcement is the clearest indication yet that China wants to shut down crypto-currency trading in all its forms. The statement makes clear that those who are involved in "illegal financial activities" are committing a crime and will be prosecuted.

Is bitcoin banned in China?

Bitcoin dives as China cracks down on crypto Trading crypto-currency has officially been banned in China since 2019, but has continued online through foreign exchanges. However, there has been a significant crackdown this year.

Are virtual currency-related business activities illegal?

"Virtual currency-related business activities are illegal financial activities," the People's Bank of China said, warning it "seriously endangers the safety of people's assets". China is one of the world's largest crypto-currency markets. Fluctuations there often impact the global price of crypto-currencies.