Headwinds for Bitcoin. The cryptocurrency queen slumps 6%, to nearly $ 41,000, as the Chinese Central Bank ruled that all financial transactions involving cryptocurrency were illegal. The values of cryptocurrencies, including bitcoin, have fluctuated massively over the past year in part due to regulations in China, which seek to prevent speculation and money laundering. “Business activities related to virtual currencies are illegal financial activities,” the Chinese Central Bank (PBOC) said in an online statement. She added that the offenders would be “investigated for criminal liability in accordance with the law.”
Its ruling bans all financial activities involving cryptocurrencies, such as trading in virtual currencies, selling tokens, transactions involving virtual currency derivatives, and “illegal fundraising.” In recent years, “trade and speculation around bitcoin and other virtual currencies has become widespread, disrupting the economic and financial order, giving rise to money laundering, illegal fundraising, fraud, pyramid schemes and other illegal and criminal activities, ”denounced the Central Bank.
Bitcoin had fallen sharply in May following a warning from Beijing to investors against speculative cryptocurrency trading. In June, Chinese officials reported the arrest of more than 1,000 people suspected of using criminal resources to buy cryptocurrency.
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