China declares all crypto-currency transactions illegal

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TopCat

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Apr 12, 2013
China's central bank has announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin.

"Virtual currency-related business activities are illegal financial activities," the People's Bank of China said, warning it "seriously endangers the safety of people's assets".

China is one of the world's largest crypto-currency markets.

Fluctuations there often impact the global price of crypto-currencies.

The price of Bitcoin fell by more than $2,000 (£1,460) in the wake of the Chinese announcement.

It is the latest in China's national crackdown on what it sees as a volatile, speculative investment at best - and a way to launder money at worst.

Trading crypto-currency has officially been banned in China since 2019, but has continued online through foreign exchanges.

However, there has been a significant crackdown this year.

In May, Chinese state intuitions warned buyers they would have no protection for continuing to trade Bitcoin and other currencies online, as government officials vowed to increase pressure on the industry.

In June, it told banks and payment platforms to stop facilitating transactions and issued bans on "mining" the currencies - the trade of using powerful computers to make new coins.

But Friday's announcement is the clearest indication yet that China wants to shut down crypto-currency trading in all its forms.

The statement makes clear that those who are involved in "illegal financial activities" are committing a crime and will be prosecuted.

And foreign websites providing such services to Chinese citizens online is also an illegal activity, it said.

The technology at the core of many crypto-currencies, including Bitcoin, relies on many distributed computers verifying and checking transactions on a giant shared ledger known as the blockchain.

As a reward, new "coins" are randomly awarded to those who take part in this work - known as crypto "mining".

China, with its relatively low electricity costs and cheaper computer hardware, has long been one of the world's main centres for mining.

The activity is so popular there that gamers have sometimes blamed the industry for a global shortage of powerful graphics cards, which miners use for processing crypto-currencies.

The Chinese crackdown has already hit the mining industry.

In September 2019, China accounted for 75% of the world's Bitcoin energy use. By April 2021, that had fallen to 46%.

 

An Avenging Bird

Lean in snorted
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Sep 16, 2019
Every country is going to eventually do this because DeFi in particular is a huge threat to the central banks.
Bitcoin will compete with the digital dollar, digital yuan, and that can't be allowed to stand.
I have read of how Chainlink is contracted with UNESCO and others for their blockchain capabilities so they may survive.
 

Rusty Crab

cowboy hats are crab hats
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Joined
Jun 20, 2020
News doesn't appear to have scared the market much... hasn't filtered through yet?
Like I said, we get this "news" so often that I doubt most people even flinch at it. Part of me thinks they just announce it every time they want the price to drop.
 

Lone MacReady

"Welcome to our home, Y-Yuri."
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Apr 19, 2019
They aren't wrong when they say that Baitcoin is a digital bag-holding ponzi scheme dangerous to their citizens, especially with sites requiring ID (or worse your SSN) to trade. The problem is China's dictators aren't doing this to protect their own people, they are doing it simply because they want that digital control for themselves over western Shekelers. While the core of what Digital offers is still good on principle - No tracking, and Anonymous buying without national sovereigns - the paradigm is already being co-opted by Globalists. What continues to be sold as freedom and anonymity from big government, is in actuality being corrupted by that same big government into a new system of complete currency control, purchase tracking, velocity manipulation, and Zero anonymity (once paired with social credit scores). FEDcoin is the goal, and western nations are doing exactly what China is doing behind the scenes.
 

Suburban Bastard

Everyone's favorite smug bully!
True & Honest Fan
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Apr 7, 2019
They’re definitely doing this because people have been using it to avoid the CPC’s tracking. They’re also going to fail at banning it.
 

Gimmick Account

最初はいつも痛いけど感じてくると甘噛みしてほしい
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Dec 23, 2020
Chinky fucks try to keep the capital within their rapidly aging and disintegrating state to avoid complete economical collapse. Won't work.
Or they have some backhanded reason for wanting to appear like they're doing this for the opposite result like half the shit they do.
I'd ask a Chinese friend if this is really illegal or just "illegal" but I don't know any nerds.
 

albert the programmer

In Memoriam Of Vangelis (1943-2022)
True & Honest Fan
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Jan 1, 2020
China banning crypro again? What about their social credit system? In this case, would one not work with the other?

Not giving them any ideas, of course.
 

Not Really Here

"The Blackface Lawyer and Racist Dog Show"
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Dec 17, 2019
After years of rumors the mad lads actually did it, wild just wild bro.