China's central bank says all cryptocurrency-related transactions are 'illegal': Report

In a major shake-up in the crypto world, the Chinese central bank has said all cryptocurrency-related transactions are "illegal". A Q&A statement, accessed by global news agency Bloomberg, on China's PBOC's (People’s Bank of China) website regarding the joint government guidelines says cryptocurrency trading must be banned.

The statement says all kinds of cryptocurrencies including Bitcoin are not "fiat" currencies, which is why they should not be circulated in the market.

The strongest yet statement from China's top bank has sent ripples across the world. The biggest cryptocurrency Bitcoin has slipped as much as 4.5 per cent on Friday, while the second biggest cryptocurrency Ethereum is down 6.65 per cent. Other cryptos are also seeing a major fall in their value.

This latest PBOC statement is also being perceived as an indication of a possible full-scale crackdown on crypto trading in China. The country's economic planning agency has also recommended that crypto mining should be banned in China to meet the carbon emission goals.

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