China: All Cryptocurrencies, including Bitcoin, illegal

China’s central bank declared all transactions involving Bitcoin and other virtual currencies illegal on Friday, stepping up a campaign to block use of unofficial digital money. Chinese banks were banned from handling cryptocurrencies in 2013, but the government issued a reminder this year.
That reflected official concern cryptocurrency mining and trading might still be going on, or the state-run financial system might be indirectly exposed to risks. It is the latest in China’s national crackdown on what it sees as a volatile, speculative investment at best – and a way to launder money at worst.
China is one of the world’s largest cryptocurrency markets. Fluctuations there often impact the global price of cryptocurrencies. The price of Bitcoin fell by more than $2,000 in the wake of the Chinese announcement.
“Virtual currency-related business activities are illegal financial activities,” the People’s Bank of China said, warning it “seriously endangers the safety of people’s assets”.