The value of Bitcoin has dramatically dropped after China’s central bank on Friday, September 24 announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin and ethereum in the country.
China is one of the world’s largest crypto-currency markets and 95 percent of crypto mining occurs in China.
Following the announcement, the price of Bitcoin fell by more than $2,000 (£1,460).
It is the latest in China’s national crackdown on what it sees as a way to launder money and a speculative investment.
Trading crypto-currency was officially banned in China since 2019, but has continued online through foreign exchanges.
In May, Chinese state intuitions warned buyers they would have no protection for continuing to trade Bitcoin and other currencies online, as government officials vowed to increase pressure on the industry.
The Friday statement makes clear that those who are involved in “illegal financial activities” are committing a crime and will be prosecuted.
The statement also added that foreign websites providing such services to Chinese citizens online is also an illegal activity.
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