Chinese Central Bank reinstates Bitcoin’s illegal status in the country

The People’s Bank of China once again asserted its crypto crackdown stance at a recent media briefing. The Central Bank stated that virtual currencies like Bitcoin can’t compete with legal tender in the nation. The bank officials argued that cryptocurrencies are not backed by any real value.

The central bank highlighted that virtual currency transactions are just “pure hype”. It advised the public to raise risk awareness, and consciously stay away from crypto to protect their pockets.

People’s Daily Online reported Yin Youping’s statement, the Deputy Director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China. He said that virtual currency-related transactions are pure investment speculation. “We remind the people once again that virtual currencies such as Bitcoin are not legal tenders and have no actual value support.”

Central Bank fastens Crypto regulations in lieu of potential uprising

The Deputy Director, Yin Youping disclosed the Bank’s future strategy. He stated that the central bank’s next step is to set up a normalized working mechanism, accompanied by a high-pressure situation. Additionally, Youping emphasized that the nationwide crypto crackdown will continue. He further requested the general public to promptly report if they come across any clues concerning illegal fund-raising.

Yin Youping stated that in lieu of a “possible rebound in virtual currency trading operations”, the central bank will now actively employ its task force to locate overseas exchanges along with domestic traders in 2021. Furthermore, the bank will focus on the ban of trading websites, apps, and corporate channels that encourage and enable cryptocurrencies in the nation. Yin Youping shared that the cryptocurrency trading frenzy has significantly dropped because of active and intensified policy publicity.

The Central Bank will further expand the crypto crackdown by actively working with the lead department of the China Banking and Insurance Regulatory Commission. They aim to detect and shut down illegal fund-raising activities using virtual currency and blockchain.

To achieve its mission, the bank is focusing on “system construction, monitoring and early warning, combating and handling, publicity and education, and resolutely combating the use of virtual currency and blockchain.” that facilitate illegitimate fund-raising.