The Central Bank of China has declared a ban on all cryptocurrency transactions on Friday, which also includes overseas cryptocurrency exchanges from the service providers to investors in the country as it continued to crack down on all cryptocurrency transactions.

Cryptocurrency banned in China
Paul Barron Network

Here are some key highlights of the news:

  • In a recent update on its website, the PBOC announced that it will continue to ban all payment companies, internet platforms, and financial institutions from facilitating people with crypto transactions.
  • The regulators are also required to take notice that it will step up the monitoring of risk associated with activities pertaining to crypto transactions.
  • The Central Bank of China also intended to establish an evaluation mechanism for early warning and stopping “hype” in cryptocurrency activities.
  • After the announcement, the value of Bitcoin dropped by 4.5% on Friday, where the value of Ether surged by 6.5%.

The economy planning agency of China also said that it is an urgent task to root out crypto mining and also the crackdowns are significant in order to meet carbon goals.

Investors should expect a “knee-jerk price reaction as China takes the wind out of Bitcoin’s sails,” said Antoni Trenchev, co-founder of crypto lender Nexo.  “The recent rebound from just below $40,000 has likely run its course for now.” 

We will keep you posted with further details.