Enlarge image
Bitcoin coins in front of the Chinese flag (symbolic image): strictly prohibited
Photo: Dado Ruvic / REUTERS
Cryptocurrencies have long been a thorn in the side of the Chinese leadership, now the Chinese central bank is cracking down on Bitcoin, Ether and Co.: All financial transactions with virtual currencies are considered illegal, according to the central bank.
Business in connection with digital currencies are "illegal financial activities" and suspects should expect criminal investigations.
With their decision, not only trading in digital currency, but also the sale of digital assets and transactions in crypto derivatives are prohibited.
The Chinese leadership has been taking strict action against digital currencies for a long time and has been warning against them again and again.
With this she wants to set an example against speculation and money laundering.
For this reason, too, the value of global crypto currencies fluctuated sharply again and again.
Immediately after the announcement from Beijing, Bitcoin, which is the most famous cryptocurrency, lost value and collapsed by more than six percent.
The digital currency Ethereum also lost significantly in value by minus 10.7 percent.
In recent years, trading in Bitcoin and other cryptocurrencies has "destroyed the economic and financial order" and "has facilitated money laundering, illegal capital raising, fraud and other criminal activities," said the Chinese central bank.
That threatens the security of citizens' property.
The pure trading and "production" of cryptocurrency have been banned in China since 2019.
Cryptocurrencies were invented as a means of payment that works independently of central banks, so they can hardly be regulated.
Skeptics warn of the high price fluctuations of digital currencies - they are therefore often used more as an object of speculation and investment than as a means of payment, which can result in high losses.
In addition, spectacular hacker attacks on cryptocurrency platforms recently made the headlines.
China is working on its own internet currency.
With the signal from Friday, the government is now paving the way for a cryptocurrency under strict leadership control.
mic / AFP
