Bitcoin Drops After China Makes All Crypto Transactions Illegal

China’s central bank has announced that all crypto-related transactions and services are now illegal. In response, Bitcoin dropped down to $41k from $45k.

According to a Bloomberg report, China has intensified its crackdown on crypto and Bitcoin as the nation’s central bank says all digital currency transactions are illegal.

According to The People’s Bank Of China (PBOC), not only are Bitcoin, Ethereum, and others unrecognized as legal tender, any services related to them are also illegal.

These crypto services include derivatives trading and exchange services provided by foreign firms to the country’s residents.

The news comes amid global markets already being strained over the debt crisis of the property developer China Evergrande Group.

The report also says that the nation considers cracking down on miners an urgent priority in order to meet carbon goals.

China has already been at work cracking down on crypto and bitcoin mining since the second quarter of 2021. Regions like the miner hub of Sichuan have been targeted by the government in the last few months.

These mining crackdowns earlier caused the world BTC hash rate to collapse as most of it resided in the country. Though, since then, miners have relocated to other nations and the hash rate has kicked back up.

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