China announces all cryptocurrency transactions as illegal

The global values of cryptocurrencies including Bitcoin have massively fluctuated in during 2020-2021 partly thanks to Chinese regulations, that sought to stop speculation and concealment .

According to People’s Bank of China (PBOC), Virtual currency-related business activities are illegal financial activities.

Offenders are going to be “investigated for criminal liability” in accordance with the law.

Chinese notice has banned all the related financial activities involving cryptocurrencies like transactions involving virtual currency derivatives, selling tokens, trading crypto, and illegal fundraising.

Why ban was put?

According to People’s Bank of China, trading of Bitcoin and other virtual currencies had become widespread and are disrupting economic & financial order. It also gave rise to concealment , fraud, illegal fund-raising, pyramid schemes and other illegal & criminal activities. These disruptions were seriously endangering the security of assets of the people. Considering these facts, China has declared all the Cryptocurrency transactions illegal.

Significance of the ban for China

Crypto crackdown has opened gates for China to introduce its own digital currency. China’s own digital currency is already within the pipeline. it'll allow the central government of China to watch transactions.

Crypto creation and trading have already been illegal in China since 2019.

About Cryptocurrency

Cryptocurrency may be a binary data that are designed to figure as a medium of exchange. Here, individual coin ownership records are stored during a ledger which is existing within the sort of a computerized database. Strong cryptography are wont to secure transaction records, control the creation of additional coins also to verify the transfer of coin ownership.

Information taken from - gktoday.in