China says all crypto-related transactions are illegal
China's central bank said on Friday that all activities related to cryptocurrency transactions are illegal and must be banned.
The People’s Bank of China said in a Q&A posted on its website that it will ban financial institutions, payment groups and internet companies from facilitating the trading of cryptocurrency.
According to a CNBC translation, it said: "Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity.
"Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies."
The news sent cryptocurrencies tumbling, with Bitcoin falling below $44,000, while Ether, Dash and Litecoin also slumped.
Neil Wilson, chief market analyst at Markets.com, said: "Everyone knows China is totally anti crypto - this is not totally new, but the market hated the headline and it underscores that China is cracking down and won’t give crypto oxygen."