The People’s Bank of China (PBOC), the People’s Bank of China, published a question and answer on its website, stating that Chinese citizens’ participation in virtual currency exchange abroad is “considered as illegal financial activities”. The People’s Bank of China also reiterated past comments, emphasizing that “financial institutions and non-bank payment institutions” cannot handle encrypted payments.

China’s central bank shakes up the crypto market

After the Central Bank of China once again stated that the country does not welcome decentralized virtual currencies, the cryptocurrency economy shook on September 24. The People’s Bank of China has been saying this since 2013, and four years later, they banned domestic cryptocurrency exchanges in 2017. In 2021, as the economic value of encryption reached new heights, the Chinese government cracked down on Bitcoin miners operating in the country. This led to a sharp drop in Bitcoin’s global computing power, and many Chinese miners moved to other regions.

Now, the People’s Bank of China warns citizens of “illegal” behaviors when using cryptocurrencies. The People’s Bank of China published a question and answer on the central bank’s website, announcing that virtual currency exchanges that provide services to domestic residents are illegal and will be investigated. “Overseas virtual currency exchanges that use the Internet to provide services to domestic residents are also considered illegal financial activities,” the rough translation of the comment pointed out. The translator also stated that it will investigate the employees working for these international exchanges. The People’s Bank of China further added:

Financial institutions and non-bank payment institutions cannot provide services for activities and operations related to virtual currencies.

China’s seventh warning, “on-chain fundamentals still indicate that the bull market in the fourth quarter may continue”

At the same time, before the news from China, the crypto economy is rebounding from the last downturn after the initial Evergrande panic. In a note sent to Bitcoin.com News, Ulrik K. Lykke, executive director of crypto/digital asset hedge fund ARK36, pointed out that this is the seventh time the Chinese government has cracked down on Bitcoin.

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“Once again, the Chinese government has cracked down on Bitcoin. Since 2013, it has now done so at least seven times — twice this year,” Lykke emphasized. “Although every time this happens, the market will react to the price drop, but each time the impact is smaller and more short-lived. Because of this, the story of “China bans Bitcoin” has gained in the Bitcoin community Investors should be careful not to make emotional decisions based on news of this trend, because the fundamentals on the chain still indicate that the bull market in the fourth quarter may continue.”

Ballet founder Bobby Lee: “Not the last nail in the coffin”

Bobby Lee, one of the earliest Bitcoin exchanges in China and the founder of Ballet, a cold storage card company, said that the People’s Bank of China warning from China is not over yet. “Don’t panic: China has just banned Bitcoin again. This time, the ban targets transactions on offshore exchanges (using VPN) and the use of local agents or over-the-counter services to exchange RMB to USDT. Although this sounds very similar Bad, but it’s not actually the last nail in the coffin,” Lee Comment On Twitter.

George Zarya, CEO of the digital asset prime brokerage company and exchange Bequant, also discussed this topic with Bitcoin.com News on Friday. Zarya told the Bitcoin.com news station: “As we all know, China has adopted extremely confident declarations and prosecutions to completely eliminate radio broadcasts.”

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“This time, the view is very clear. China will not support the development of the cryptocurrency market because it violates its policy of strengthening the control of capital flows and large-scale technology. For the institutional crypto industry, it will not be like those that can leave. People who have left and those who cannot be closed or ignored have changed. The retail market is likely to have been ignored and will continue to support market capacity,” added Bequant executives.

What do you think of China’s latest statement on Bitcoin and virtual currency exchange? Please tell us your thoughts on this topic in the comments section below.

Tags in this story

ARK36, Ballet Founder, Bequant, Bitcoin China, Central Bank, China, China Bitcoin, china crypto, Chinese government, George Zarya, PBOC, pboc suppression, People’s Bank of China, Ulrik K. Lykke, virtual currency exchange

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