Cryptocurrency Crash: China Bans Cryptocurrency, Bans Foreign Transactions.
Key Sentence:
- The decision by the People's Bank of China sent shockwaves through the cryptocurrency market.
On Friday, China's central bank, the People's Bank of China, outlawed all cryptocurrency trading activities. The People's Bank of China also banned providing services to Chinese investors through the Internet for foreign exchanges.
These decisions have led to a sharp collapse in the cryptocurrency market. The value of Bitcoin fell by more than 4.7% in 24 hours. Ether, the second-largest digital currency, also saw a decline of 7%.
The People's Bank of China said the new law would ban cryptocurrency trading for financial institutions, payment companies, and Internet firms, covering all activities including trading, order matching, and issuing tokens for crypto transaction services. Transactions through cryptocurrency exchanges abroad will also be considered illegal. Employees of foreign cryptocurrency exchanges will also be investigated.
Concerns about cryptocurrencies in India
Recently, the Reserve Bank expressed concern over cryptocurrency transactions. Reserve Bank Governor Shaktikant Das said the RBI was concerned about cryptocurrencies like Bitcoin. In addition to China, cryptocurrency transactions are banned in Bangladesh, Russia, Egypt, and Morocco.