Overseas Cryptocurrency Exchanges Engaging in Illegal Financial Activities Even When Chinese Nationals Trade Within China
[Asia Economy Reporter Ki-min Lee] Following the complete ban on Bitcoin mining and trading in May, China has now classified all cryptocurrency transactions as illegal activities.
On the 24th, the People's Bank of China, the country's central bank, posted a statement on its website declaring, "Cryptocurrency-related business activities are illegal financial activities and are uniformly and strictly prohibited."
The People's Bank emphasized, "Recently, cryptocurrency trading promotion activities have been rampant, disrupting economic and financial order, and fostering illegal criminal activities such as gambling, illegal fundraising, fraud, multi-level marketing, and money laundering, seriously endangering the property safety of the people."
Referring to major cryptocurrencies such as Bitcoin, it stated, "Cryptocurrencies do not have the same legal status as fiat currencies." This effectively serves as a warning against the market circulation of cryptocurrencies.
In particular, it also declared that overseas cryptocurrency exchanges providing services to Chinese citizens within China via the internet constitute illegal financial activities.
Participation in cryptocurrency investment and trading activities carries legal risks, and warnings were issued against corporations, non-corporate organizations, and individuals investing in cryptocurrencies and related derivative products.
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