The People’s Bank of China (PBOC), the country’s central bank, published a Q&A to its website which said that Chinese citizens participating in virtual currency exchange offshore is “considered illegal financial activity.” The PBOC also reiterated comments it had made in the past stressing that “financial institutions and non-bank payment institutions” cannot process crypto payments.
China’s Central Bank Shakes Crypto Markets
The cryptocurrency economy shuddered on September 24 after China’s central bank once again said decentralized virtual currencies are not welcome in the country. The PBOC has been saying things like this since 2013 and then four years later, they banned crypto exchanges operating domestically in 2017. In 2021, as the crypto economy reached new heights in value, the Chinese government cracked down on bitcoin miners operating in the country. This caused Bitcoin’s global hashrate to plummet a great deal and many Chinese miners migrated to other regions.
Today's China news is the PBoC publishing a detailed Q&A with what seems to be mostly old news. This was taken up by the likes of Bloomberg who incredibly broadcast it as "the toughest blow yet to the trillion-dollar industry". https://t.co/C3Cw0QAenN
— Alex Krüger (@krugermacro) September 24, 2021
Now China’s central bank is warning the citizenry of “illegal” behavior when it comes to cryptocurrency use. The PBOC posted a Q&A to the central bank’s website which declares virtual currency exchanges offering services to domestic residents are illegal and will be investigated. “Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,” a rough translation of the comments noted. The translation also said that employees working for these international exchanges will be investigated. The PBOC further
