The news was made via a Q&A on the People's Bank of China's website. According to CNBC, “Overseas virtual currency exchanges that use the internet to offer services to domestic residents are also considered illicit financial activity.” As part of its goal to establish financial stability, Chinese Vice Premier Liu He informed a gathering of finance officials in May that the government would "crack down on bitcoin mining and trading activity." Financial institutions and payment businesses should not participate in cryptocurrency transactions or provide crypto-related services to its customers, according to financial and banking watchdogs.
Previous crackdowns, like today's, resulted in Bitcoin falling due to huge sell-offs. Between April and July of this year, its value dropped by approximately half. The statement from the country's most powerful regulators on Friday is the most precise and comprehensive yet, confirming Beijing's intention to suffocate the Chinese crypto sector.
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