China's central bank says all cryptocurrency-related activities are illegal, vows harsh crackdown

3 weeks ago

In this photograph illustration, the Bitcoin logo is seen connected a mobile instrumentality with People's Republic of China emblem successful the background. (Photo Illustration by t/SOPA Images/LightRocket via Getty Images)

Budrul Chukrut | SOPA Images | LightRocket | Getty Images

China's cardinal slope renewed its pugnacious speech connected bitcoin Friday, calling each integer currency activities amerciable and vowing to ace down connected the market.

In a Q&A posted to its website, the People's Bank of China said services offering trading, bid matching, token issuance and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services successful mainland China are besides illegal, the PBOC said.

"Overseas virtual currency exchanges that usage the net to connection services to home residents is besides considered amerciable fiscal activity," the PBOC said, according to a CNBC translation of the comments.

"Financial institutions and non-bank outgo institutions cannot connection services to activities and operations related to virtual currencies," the slope added, reiterating past comments.

The terms of bitcoin sank astir 2.5% connected the news, past trading astatine astir $42,913.

It's not the archetypal clip China has gotten pugnacious connected cryptocurrencies. Earlier this year, Beijing announced a crackdown connected crypto mining, the energy-intensive process that verifies transactions and mints caller units of currency. That led to a crisp slump successful bitcoin's processing power, arsenic aggregate miners took their instrumentality offline.

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- CNBC's Evelyn Cheng contributed to this report.