PBOC says Bitcoin has no value as it warns of crackdown
05:59, 1 September 2021
Virtual currency-related transactions are pure investment speculation and the People’s Bank of China (PBOC) will continue to clamp down on digital currencies, according to a briefing from a senior official at the bank.
Yin Youping, deputy director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China, told a media briefing on 27 August that Chinese investors should increase their risk awareness and avoid digital currencies.
“We remind the people once again that virtual currencies such as Bitcoin are not legal tender and have no actual value support,” Yin told a media briefing, first reported by the state-backed People’s Daily Online.
PBOC will monitor crypto exchanges
Yin said that the PBOC would monitor offshore digital exchanges and actively block access to trading apps as part of a broader crackdown on the sector.
According to the People’s Daily report, the PBOC is already actively coordinating with the China Banking and Insurance Regulatory Commission to implement monitoring systems which will enable the Chinese government to reduce the use of virtual currencies.
The general public will be encouraged to report illegal digital currency activity to the Chinese authorities.
What is your sentiment on BTC/USD?
Broader crackdown
China has made several moves to rein in the cryptocurrency sector this year. In May, news that the authorities had reasserted a 2017 ban on digital asset use by financial firms brought bitcoin’s price under $40,000.
Meanwhile, in June, hydro-energy-rich Sichuan province became the latest Chinese region to ban crypto mining, in a government campaign that has eradicated 90% of the country’s mining activities.
Trade Bitcoin to US Dollar – BTC/USD CFD
Read more: Bitcoin falls nearly 8% on China mining crackdown
Related topics