China prohibits trading and mining of cryptocurrencies

Bitcoin and Co. prices fall 1 Min. read

News / Robin Cromberg
Image source: Art throat via Unsplash

The Chinese central bank bans trading in cryptocurrencies and announces severe penalties for violations. Crypto mining, for which China has so far been the main location, is also banned.

The Central Bank of China has them all on Friday Activities related to cryptocurrencies declared illegal. In a announcement, Bitcoin, Tether and Ether are explicitly mentioned, these currencies consequently lost a lot of their value: The Bitcoin price fell by over five percent from 45,000 US dollars to 43,000 dollars, Ether even fell by around seven percent. Foreign online services that provide access to digital currencies are also prohibited.

Crypto mining is now also banned nationwide

At the same time, the Chinese government issued a nationwide ban on crypto mining. The government has been criticizing the for a long time high energy consumption of the mining farmswhich are particularly common in China and have been banned in some parts of the country for a long time. Activities around cryptocurrencies encourage criminal activities and threaten the financial security of Chinese citizens, the government justifies the bans.

In the background, Beijing is also working on its own digital currency. Of the state-controlled “e-yuan” is still in the test phase and, unlike Bitcoin and Co., does not allow anonymous payments.

Sources :

daily News

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