A recent development from China has indicated that the Asian country’s position with cryptocurrency remains unchanged, as the People’s Bank of China today issued a document highlighting stringent measures to further crackdown on every crypto trade in the country.
In the Friday announcement, the Chinese apex bank declared that all services that enable users to convert fiat currencies into cryptocurrency are now considered illegal. This means users can no longer convert their local currency into crypto, blocking them from crypto trading.
Exchanges that would be affected in this regard are those offering over-the-counter services such as Huobi, OKEx, and Binance, which give users the opportunity of converting the country’s Yuan into crypto assets to secure their participation in crypto trading activities.
Also contained in the notice is that offering crypto derivatives trading services constitutes illegal business in the country; even overseas exchanges that offer such services to their residents are bounded by this new declaration.
The Apex bank also added that Chinese residents who work for foreign exchange offering the prohibited services available to Chinese could be sanctioned.
Following the release of this document by the authorities, the price of the flagship crypto-asset plunged by $2000. This appeared like the incident in May when China issued a crackdown notice on miners, causing their relocation.
Earlier this month, the central macroeconomic planning agency in China, National Development and Reformation Commission, had issued a separate document to make crypto mining crackdown part of the provincial government’s achievement.