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

Is it illegal for offshore crypto exchanges to serve customers in China?

The bank reiterated that it was illegal for offshore crypto exchanges to serve customers in mainland China, one way that traders there have skirted a longstanding ban on domestic crypto exchanges. The moves on Friday were the latest signal of Beijing’s determination to turn the screws on cryptocurrencies.

Is bitcoin legal in China?

But Beijing stopped short of prohibiting possession, shielding bitcoin from long-term price pressure amid an ongoing crackdown, analysts said. The People's Bank of China said bitcoin, ether and tether "are not legal and should not and cannot be used as currency in the market," according to a translated version of its statement.

What is China's crackdown on cryptocurrency?

Sept. 24, 2021 Updated 2:37 p.m. ET China intensified its crackdown on cryptocurrency on Friday, declaring all financial transactions involving cryptocurrencies illegal and issuing a nationwide ban on cryptocurrency mining, the power-hungry process in which vast computer networks compete for newly created crypto tokens.