Beijing: Digital coins around the world fell after the Chinese central bank on Friday stated that all transactions involving Cryptocurrency was illegal.
This has been done for national security purposes and for “community assets security”, said the bank.
A large number of Chinese wealth, including those produced by the business community involved in international transactions, are concentrated in digital coins such as Bitcoin and Tether.
The BioCoin market fell nine percent of $ 45,000 per unit to $ 40,900 in three hours from the announcement, according to data from coinmarketcap.
The Bank of China, or the central bank, feels that these coins – which are outside the ambit rules – are used for money laundering.
The bank said the offenders would be “investigated for criminal liability in accordance with the law”.
In addition to the central bank, nine other government institutions, including a strong national development reform Commission, has gathered to express the determination to eliminate the use of digital coins.
At the same time, the government has not asked the Cryptocurrency holder to restore digital coins to the country.
It does not want to disturb the market because it will cause many “national assets” held in digital coins that will be lost in erosion, the source shows.
This step comes in the midst of large-scale crackdown on a large number of Chinese companies managed privately, including technology giants and our registered companies.
The Communist Party felt losing control of the rich part of stakeholders in 248 companies registered in the US, and they needed to be detained.
Bank Rakyat China said a lot when trying to explain the purpose of the cryptocurrency ban.
It promised to “explicitly clamping speculation of virtual currencies, and related financial activities and bad behavior to protect the properties of the community and maintain economic, financial and social order”.
The Global Cryptocurrency Market has grown rapidly to $ 2 trillion in April this year (the last number available), causing alarm between regulators throughout the world.
China is afraid of the big global crisis in the form of this currency.
Trying to get the first drive advantage in the case of an accident, said the source.
Some other regulators, including the Federal Reserve in the US, are pondering steps to limit the use of cryptocurrency.
US Treasury Secretary Janet Yellen said last July that the government must move quickly to establish the regulatory framework for the coin.
China has tried to stop the production of Bitcoin in this country, which is a source of almost three quarters of Bitcoin supply in the world for mining they demand a large number of electricity.