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China’s Central Bank Issues An additional Ban on Virtual Foreign currencies

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The People’s Bank of China (PBOC) issued the statement effectively banning any business related to cryptocurrencies.

In the announcement, the PBOC relates that the rise in digital currency trading has disrupted economic and financial order. The central banks said they have also led to the distribute of illegal and unlawful activities. According to the PBOC these types of crimes, such as gambling, illegal fund-raising, fraud, pyramid strategies, and money laundering, seriously endanger the safety associated with people’ s property.

In order to deal with the risks of digital currency trading speculation, the PBOC issued a statement addressing them.

PBOC’s crypto prohibit

The first point the Chinese language monetary authority made had been to establish that “virtual currency does not have the same legal status as legal currency. ” Therefore , according to the PBOC, “virtual currency-related business activities are usually illegal financial activities. ”

The announcement further information the activities that are now restricted under this issue. For instance, any kind of exchange involving virtual currencies is now prohibited. This includes swap between legal and digital currency, exchange between digital currencies, or trading virtual currencies as a central counterparty. Overseas exchanges, providing their own services to Chinese occupants, the PBOC also views “an illegal financial activity. ”

Additionally , providing intermediary information and pricing services for virtual currency transactions, is also illegal. This is the case for token issuance funding, virtual currency derivatives dealings “and other virtual foreign currency related business activities. ” 

The announcement also showcased how Chinese authorities intend to facilitate the prohibition upon cryptocurrencies, such as coordinating departments and strengthening enforcement. The state also intends to strengthen its risk monitoring and early warning of virtual currency trading speculation.

However , bloggers on social media remarked exactly how similar this announcement appeared to one posted by the PBOC on September 3. “Don’ t fall for it, ” one user said. “This is the 10th or 11th time China is banning crypto. Nothing new. ”

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The blog post China’ s Central Bank Issues Another Ban on Virtual Currencies appeared 1st on BeInCrypto.