China has banned cryptocurrency

People’s Bank of China (analogue of the Central Bank) called illegal all the activities related to cryptocurrencies, and promised to take tough measures to prevent themselves, writes Reuters.

People’s Bank of China (NBK) on September 24 stated that cryptocurrencies should not circulate on the markets on a par with traditional currencies and that foreign exchanges from now on forbidden to provide services to mainland investors. In the Response Replies on your official website of the NBK, it was pointed out that trade, comparison services (comparison of applications for the purchase and sale of securities in the stock market), the production of tokens and derivatives (future price contracts) for cryptocurrency strictly prohibited.

Central Bank warned that it would forbid financial institutions, payment systems and Internet firms to facilitate the Cryptovaya Trade, as well as strengthen the monitoring of risks associated with this activity. The government will “decisively stop speculating virtual currency and the associated financial activities and illegal behavior to protect the property of people and support economic, financial and social order,” the NBK statement says.

After the dissemination of this information in the media on September 24, Bitcoin fell by almost 3.7 percent. At the time of writing the news, its price amounted to $ 42,090.91. Other cryptocurrentes also collapsed – the cost of Ethereum decreased by 7.3 percent to 2,844.02 dollars.

The National Commission of China for Development and Reforms in May stated that he starts the nationwide struggle with the cryptocurrency mining (the energy-intensive process of checking the transaction and the creation of new monetary units). This led to a sharp drop in the computing power of the Bitcoins network in the world, since many miners turned off their equipment.

/Media reports.