[ad_1]
BEIJING (AP) – China’s central bank on Friday declared all transactions involving Bitcoin and other virtual currencies illegal, stepping up a campaign to block the use of the unofficial digital currency.
Chinese banks were banned from handling cryptocurrencies in 2013, but the government issued a recall this year. This reflected official concern that cryptocurrency mining and trading could still continue or that the state-run financial system could be indirectly exposed to risk.
Friday’s notice complained that Bitcoin, Ethereum, and other digital currencies are disrupting the financial system and being used in money laundering and other crimes.
“Transactions in virtual currency derivatives are all illegal financial activities and are strictly prohibited,” the People’s Bank of China said on its website.
Cryptocurrency promoters say they allow anonymity and flexibility, but Chinese regulators fear weakening the ruling Communist Party’s control over the financial system and say they could help cover up criminal activity.
The People’s Bank of China is developing an electronic version of the country’s yuan for cashless transactions that can be tracked and controlled by Beijing.
Copyright © 2021. All rights reserved. This website is not intended for users located in the European Economic Area.
[ad_2]
Source link