Ten entities, including the central bank and regulators for affairs, securities and foreign exchange, have pledged to work together to root out “illegal” crypto activity, the first time that Beijing regulators have united to explicitly ban all crypto-related activities.
China in May banned financial institutions and payments companies from providing services related to cryptocurrency transactions, and issued two similar bans in 2013 and 2017.
The statement is the most detailed and comprehensive yet by the country’s major regulators, and the move comes amid a global crackdown on cryptocurrencies, as governments from Asia to the United States fear highly volatile, privately managed cryptocurrencies could undermine their control of financial systems. and cash, increases systemic risk, fosters financial crime, and harms investors.
It is also concerned that “mining,” the energy-intensive computational process through which bitcoin and other currencies are mined, could affect global environmental goals.
Analysts say that China also sees cryptocurrencies as a threat to the sovereign digital yuan, which has reached an advanced stage of beta testing.
Bitcoin, the world’s largest cryptocurrency, fell more than 9% before paring those losses.