Tuesday, October 26, 2021

Chinese Bank of China says ‘illegal’ to buy or hold cryptocurrencies

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Update: The Bank of China said in a statement issued on Thursday that, in line with regulations in China, it is illegal to transact in crypto or other virtual currencies or to hold them.

“Such activities are extremely harmful to the operation of financial markets and have no role to play in China’s financial system,” the statement said.

The Bank of China has warned that all cryptocurrency transactions are illegal in China, in a move to calm worries about the rapid growth of the digital currency and why its state-owned peers are yet to offer their own digital coin.

“Cryptocurrencies are contrary to legal norms and risks poisoning financial security,” an official with the China Banking Regulatory Commission (CBRC) said at a local conference on Wednesday.

Bitcoin hit record high on fears it could be plunged into deeper turmoil Read more

Cryptocurrencies, which offer anonymity to those who trade them, have become an increasingly popular form of global payment, but they have also come under scrutiny from regulators.

Particularly since the launch of Bitcoin Cash (BCH) a year ago, prices of digital coins and tokens surged, partly driven by investors exchanging their holdings for bitcoin.

But virtual currencies have now almost entirely lost ground, losing almost 50% of their value in the past month.

Goldman Sachs on Wednesday warned against buying cryptocurrencies, saying investors should realise there was a “real risk” they could lose all their money.

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