It seems like China has been in the news every day for the last week. And not only for crypto. On Friday, China’s central bank renewed its tough talk on bitcoin, calling all digital currency activities illegal and vowing to crack down on the market.
In a Q&A posted to its website, the People’s Bank of China said services offering trading, order matching, token issuance, and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services in mainland China are also illegal, the PBOC said.
“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,” the central bank said. Workers at foreign crypto exchanges will be investigated, it added.
It’s not the first time China has gotten tough on cryptocurrencies. Earlier this year, Beijing announced a crackdown on crypto mining, the energy-intensive process that verifies transactions and mints new units of currency. That led to a sharp slump in Bitcoin’s processing power, as multiple miners took their equipment offline.
What do you think will happen to Evergrande (HK:3333)? And do you guys think it will still have an impact on Bitcoin and the cryptomarkets?