China's central bank declares cryptocurrency transactions illegal

China continues to push back against cryptocurrencies. The People's Bank of China stated that cryptocurrency transactions are illegal and called for an official ban. It cited concerns about national security and the safety of residents' assets.

Bank states that cryptocurrencies are not fiat currency and cannot be in circulation. Any cryptocurrency transactions are now considered criminal financial activities. The bank has told financial and internet companies to stop allowing cryptocurrency transactions on their platforms. Foreign exchanges are also banned from providing services to Chinese residents. 

The rise of cryptocurrencies has caused an increase in "money laundering, illegal fundraising, fraud, pyramid schemes and other illegal and criminal activities," the bank said. Those who violate the rules will be "investigated for criminal liability."

Several agencies in the country are working together under the leadership of the National Development and Reform Commission to finally put an end to cryptocurrency mining in the country. The local Sichuan provincial government is known to have banned cryptocurrency mining in June, forcing some miners to leave the country.

Source: bloomberg, techcrunch