China has outlawed all cryptocurrency transactions, as it is not an approved medium of exchange in the country, the People’s Bank of China (PBC) said on Friday.
China already clamped down on cryptocurrency mining operations earlier this year.
“Virtual currency is not a legal currency and cannot be used as payment on the market. Business activities with virtual currency are illegal,” the PBC said in a statement, adding that such activities include helping Chinese citizens exchange cryptocurrency on the internet.
The central bank noted intensified cryptocurrency trading, which allegedly undermines financial order, as well as begetting illegal and criminal activities such as gambling, fraud and money-laundering. In view of that, the authorities will tighten oversight of virtual currency operations.