{"id":20038,"date":"2021-09-26T10:29:51","date_gmt":"2021-09-26T14:29:51","guid":{"rendered":"http:\/\/worldjusticenews.com\/news\/?p=20038"},"modified":"2021-09-26T10:29:51","modified_gmt":"2021-09-26T14:29:51","slug":"china-declares-all-crypto-currency-transactions-illegal","status":"publish","type":"post","link":"https:\/\/worldjusticenews.com\/news\/2021\/09\/26\/china-declares-all-crypto-currency-transactions-illegal\/","title":{"rendered":"China declares all crypto-currency transactions illegal"},"content":{"rendered":"<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\"><b class=\"ssrcss-hmf8ql-BoldText e5tfeyi3\">China&#8217;s central bank has announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin.<\/b><\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">&#8220;Virtual currency-related business activities are illegal financial activities,&#8221; the People&#8217;s Bank of China said, warning it &#8220;seriously endangers the safety of people&#8217;s assets&#8221;.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">China is one of the world&#8217;s largest crypto-currency markets.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Fluctuations there often impact the global price of crypto-currencies.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">The price of Bitcoin fell by more than $2,000 (\u00a31,460) in the wake of the Chinese announcement.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">It is the latest in China&#8217;s national crackdown on what it sees as a volatile, speculative investment at best &#8211; and a way to launder money at worst.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"unordered-list-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<div class=\"ssrcss-1pzprxn-BulletListContainer e5tfeyi0\">\n<ul role=\"list\">\n<li><a class=\"ssrcss-9nsdc6-InlineLink e1no5rhv0\" href=\"https:\/\/www.bbc.co.uk\/news\/world-us-canada-58414555\" target=\"_blank\" rel=\"noopener\">The Texas Chinese bitcoin gold rush<\/a><\/li>\n<li><a class=\"ssrcss-9nsdc6-InlineLink e1no5rhv0\" href=\"https:\/\/www.bbc.co.uk\/news\/business-57169726\" target=\"_blank\" rel=\"noopener\">Bitcoin dives as China cracks down on crypto<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">Trading crypto-currency has officially been banned in China since 2019, but has continued online through foreign exchanges.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">However, there has been a significant crackdown this year.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">In May,\u00a0<a class=\"ssrcss-9nsdc6-InlineLink e1no5rhv0\" href=\"https:\/\/www.bbc.co.uk\/news\/business-57169726\" target=\"_blank\" rel=\"noopener\">Chinese state intuitions warned buyers<\/a>\u00a0they would have no protection for continuing to trade Bitcoin and other currencies online, as government officials vowed to increase pressure on the industry.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">In June,\u00a0<a class=\"ssrcss-9nsdc6-InlineLink e1no5rhv0\" href=\"https:\/\/www.bbc.co.uk\/news\/business-57549543\" target=\"_blank\" rel=\"noopener\">it told banks and payment platforms to stop facilitating transactions<\/a>\u00a0and issued bans on &#8220;mining&#8221; the currencies &#8211; the trade of using powerful computers to make new coins.<\/p>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">But Friday&#8217;s announcement is the clearest indication yet that China wants to shut down crypto-currency trading in all its forms.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">The statement makes clear that those who are involved in &#8220;illegal financial activities&#8221; are committing a crime and will be prosecuted.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">And foreign websites providing such services to Chinese citizens online is also an illegal activity, it said.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-mysbf6-ComponentWrapper-CrossheadComponentWrapper e1xue1i85\" data-component=\"crosshead-block\">\n<h2 class=\"ssrcss-1s5ma9r-StyledHeading e1fj1fc10\">Mining migration<\/h2>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">The technology at the core of many crypto-currencies, including Bitcoin, relies on many distributed computers verifying and checking transactions on a giant shared ledger known as the blockchain.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">As a reward, new &#8220;coins&#8221; are randomly awarded to those who take part in this work &#8211; known as crypto &#8220;mining&#8221;.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">China, with its relatively low electricity costs and cheaper computer hardware, has long been one of the world&#8217;s main centres for mining.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">The activity is so popular there that gamers have sometimes blamed the industry for a global shortage of powerful graphics cards, which miners use for processing crypto-currencies.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">The Chinese crackdown has already hit the mining industry.<\/p>\n<\/div>\n<\/div>\n<div class=\"ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86\" data-component=\"text-block\">\n<div class=\"ssrcss-18snukc-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph eq5iqo00\">In September 2019, China accounted for 75% of the world&#8217;s Bitcoin energy use. By April 2021,\u00a0<a class=\"ssrcss-9nsdc6-InlineLink e1no5rhv0\" href=\"https:\/\/www.bbc.co.uk\/news\/technology-57811959\" target=\"_blank\" rel=\"noopener\">that had fallen to 46%<\/a>.<\/p>\n<p>Source: <a href=\"https:\/\/www.bbc.co.uk\/news\/technology-58678907\" target=\"_blank\" rel=\"noopener\">bbc.co.uk<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\">China&#8217;s central bank has announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin. &#8220;Virtual currency-related business activities are illegal financial activities,&#8221; the People&#8217;s Bank of China said, warning it <a class=\"mh-excerpt-more\" href=\"https:\/\/worldjusticenews.com\/news\/2021\/09\/26\/china-declares-all-crypto-currency-transactions-illegal\/\" title=\"China declares all crypto-currency transactions illegal\">[&#8230;]<\/a><\/div>\n","protected":false},"author":1,"featured_media":20039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","footnotes":""},"categories":[109,2,6],"tags":[4510,1673,5016],"class_list":{"0":"post-20038","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headline","8":"category-news","9":"category-world","10":"tag-bitcoin","11":"tag-china","12":"tag-crypto-currencies","13":"pmpro-has-access"},"_links":{"self":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/20038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/comments?post=20038"}],"version-history":[{"count":1,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/20038\/revisions"}],"predecessor-version":[{"id":20040,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/20038\/revisions\/20040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/media\/20039"}],"wp:attachment":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/media?parent=20038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/categories?post=20038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/tags?post=20038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}