China considers trading activities involving digital money illegal
All commercial activities related to “digital money” are considered illegal in China. This is the announcement of the Central Bank of China in the announcement on the official website of this institution. Any natural person or legal entity that violates this rule will be subject to applicable criminal liability.
It should be noted that this decision covers all trading activities that use “digital money”, such as buying and selling digital money, selling digital coins, trading digital goods derived from all forms of digital money, and collecting Illegal capital and so on.
China’s central bank says digital money has spread across the internet and is causing problems for the global financial market as a means of money laundering and capital raising. Which comes from illegal sources such as criminal activities.
On September 24, after the announcement of the People’s Bank of China, the price of bitcoin fell 5.5% to $ 42,256. According to Bloomberg, the value of bitcoin plummeted last May after the Chinese government threatened all investors who want to make a profit with all forms of digital money. . And in June, Chinese authorities arrested more than 1,000 people suspected of using financial resources to engage in criminal activities and buy them digital money.
It should be noted that during the last year, the value of some digital currencies such as bitcoin has fluctuated due to the measures taken by the Chinese authorities to try to find a strategy to control and prevent money laundering. According to Bloomberg, Chinese authorities are preparing to create a “digital yuan” to bring the sector under the control of a single state.