Jakarta, CNBC Indonesia – Bitcoin will be killed is not a figment. At least this is carried out by the Chinese government in the Xi Jinping era. China is one of the largest markets for cryptocurrencies or crypto money.
The People’s Bank of China (PBoC) recently declared all cryptocurrency transactions illegal, effectively banning digital tokens such as Bitcoin.
“Business activities related to virtual currencies are illegal financial activities,” the PBoC wrote as compiled from the BBC, Monday (27/9/2021). China’s central bank also warned this activity “severely endangers the safety of citizens’ assets.”
The PBoC also revealed that it is illegal for companies or overseas cryptocurrency exchange (crypto exchange) platforms that provide services in China to be illegal.
“Overseas virtual currency exchanges that use the internet to offer services to domestic residents are also considered illegal financial activities,” the PBoC wrote as quoted by CNBC International.
The PBoC has also upgraded its systems to improve monitoring of cryptocurrency-related transactions and root out speculative investments.
“Financial institutions and non-bank payment institutions cannot offer services for crypto activities and operations related to virtual currencies,” the PBoC said.
With the issuance of this regulation, China has now officially closed all spaces for citizens to transact and trade Bitcoin in the country. This is China’s way of shutting down Bitcoin.
China started its Bitcoin shutdown in 2017. At that time, China banned initial coin offerings (ICOs), a way of issuing digital tokens and raising money. China has also shut down all local cryptocurrency exchange businesses.
In 2019 China issued a law banning Bitcoin mining, the activity of spending crypto money by cracking complex mathematical codes using special computers. Since then China has actively shut down a number of Bitcoin mining and the like.
Well, in the first quarter of 2021, China ordered financial institutions such as banks, non-banks and fintech such as Alipay and WeChat Pay to provide cryptocurrency transaction services. Recently, China declared cryptocurrency financial activity illegal and will crack down on overseas cryptocurrency exchange platforms that offer their services to Chinese citizens.