China's central bank has outlawed all transactions involving cryptocurrencies.
This is a new step taken by China in its crackdown on corrupt currencies.
According to a statement on the People's Bank of China's website, business activities related to virtual currency will be considered illegal financial activities.
According to a statement issued on September 24, China will ban all financial institutions, payment companies and Internet platforms that engage in cryptocurrency trading.
The Chinese central bank will also target foreign exchanges that provide virtual currency services to Chinese citizens via the Internet, as it has also been outlawed under the new rules.
After the announcement of the Chinese bank, the value of corrupt currencies decreased and the value of bitcoin fell below 42 42,000 but now it has risen above 42 42,000.
Similarly, the value of Ethereum, the second largest virtual currency, declined by more than 10%.
The value of digital currencies has fluctuated several times this year due to the crackdown by the Chinese government.
The Chinese bank said in a statement that cryptocurrency trading affects economic and financial affairs, while promoting illegal and criminal activities such as gambling, illegal fundraising, fraud and money laundering.
According to the statement, the protection of people's property is thus seriously endangered.
Earlier on May 18, the People's Bank of China reiterated its commitment not to use digital currencies for payments.
This resulted in a record decline in the prices of digital currencies.
It should be noted that China has been working for many years to introduce the digital yuan and has made significant progress so far.
