China Declares Crypto Trading Illegal Within the Country

China central bank declared cryptocurrency-related trading activities as illegal. No legal tender or crypto exchange. No exchange between virtual currencies or token issuance. No derivatives, no providing info, or anything related to crypto trading. But no ban on crypto as per reports.

In a document published on Friday, the People's Bank of China laid out tough measures to keep crashing down crypto trading activities.

The regulator said that all cryptocurrency exchanges that allow users to exchange fiat currencies with crypto or between cryptos themselves are now illegal activities within the country.

Further, this action will affect crypto exchanges like Huobi, OKEx, and Binance, which allow Chinese users to exchange their fiat yuan into crypto assets to participate in crypto trading activities.

Going further, the news also detailed that crypto derivatives trading services are also illegal in China, affecting again Huobi, OKEx, and Binance.

According to the statement, individuals who reside inside China but work for overseas crypto exchanges operating in China are also subject to legal prosecution.

Following the news, the price of bitcoin has sunk about $2,000. According to CoinMarketCap, BTC is trading at $41,851.95, at press time.