The country’s central bank, the People’s Bank of China (PBOC), has published a Q&A on its website stating that Chinese citizens participating in virtual currency exchange offshore are “considered illegal financial activity.” The PBOC reiterated in the past that “financial institutions and non-bank payment institutions” cannot process crypto payments.
China’s central bank shakes crypto markets
On September 24, the cryptocurrency economy shook as China’s central bank again did not welcome decentralized virtual currency into the country. The PBOC has been talking like this since 2013 and then four years later, in 2017, they banned crypto exchanges domestically. . As a result, the global hashtag of Bitcoin has been greatly reduced and many Chinese have moved to other areas of mining.
Today’s Chinese news is that PBoC is releasing a detailed Q&A which seems to be mostly old news. It took the likes of Bloomberg who incredibly broadcast it as “the hardest hit for the trillion dollar industry”. https://t.co/C3Cw0QAenN
– Alex Kruger (Rug Krugermacro) September 24, 2021
Now China’s central bank is warning citizens about “illegal” behavior in using cryptocurrencies. The PBOC posted a Q&A on the central bank’s website declaring that virtual currency exchanges providing services to indigenous residents would be illegal and would be investigated. “Foreign virtual currency exchanges that provide services to domestic residents using the Internet are also considered illegal financial activities,” the rough translation of the comments noted. The translation further states that employees working for this international exchange will be investigated. PBOC added:
Financial institutions and non-bank payment institutions cannot provide services in virtual currency related activities and activities.
China’s Seventh Warning, ‘Unchain Fundamentals Still Indicates Bull Market Continuity Probably in Q4’
Meanwhile, before the news from China, the crypto economy was in the midst of a revival from the last downward slide after fears of an early Evergrand. In a note sent to Bitcoin.com News, Ulrik K, executive director of the crypto / digital assets hedge fund ARK36.
“Again, the Chinese government has cracked down on Bitcoin. Since 2013, it has done it at least seven times now – and twice this year already,” Lai stressed. “Whenever this happens, markets react to price declines, each time the effect is smaller and more short-lived. The ‘China Bitcoin Banned’ story has become almost a meme in the Bitcoin community. Investors should be careful not to make emotional decisions based on this trending news.” Will be because the fundamentals of Onchain still indicate that the bull market may continue in Q4.
Now all the poor people would be terrified to sell
Rich people will buy it
Then the price will skyrocket again poor people holding bags https://t.co/7oKtGpUgDd
– Team Pool (im Teamcast) September 24, 2021
Ballet founder Bobby Lee: ‘Not the last nail in the coffin’
Bobby Lee, founder of Ballet, China’s first bitcoin exchange and cold storage card firm, said there is no end to PBOC warnings from China. “Don’t panic: China has banned bitcoin again. This time, the ban aims to transact offshore exchanges (using VPNs) as well as exchanges from CNY and USDT using local agents or OTC services. As bad as it may sound, it’s not really the last nail in the coffin. ” Commented On Twitter.
When my friends ask me about China sanctions I can say “Ah that’s what happens all the time”
– Who is Neeraj? September 24, 2021
George Zaria, CEO of Digital Asset Prime Brokerage and Exchange BeCount, discussed the matter with Bitcoin.com News on Friday. “China has reached the final stage with very strong statements and lawsuits to complete the radio silence,” Zaria told Bitcoin.com Newsdesk.
“At the time, it was very clear that China would not support cryptocurrency market development because it would go against the principle of tightening controls on capital flows and large technologies. For the institutional crypto industry, it won’t change much because of those who may have already left and those who haven’t been able to turn the radar on or off. The retail market has probably gone under the radar and will continue to support market volume.
What do you think of China’s latest statement on bitcoin and virtual currency exchange? Let us know what you think about this in the comments section below.
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