Late September, China’s regulators- Central Bank declared all cryptocurrency-related transactions are illegal in the country. They must be banned, citing concerns around national security and safety of people's assets.
Reasons behind their decision:
Gambling fraud
Money laundering
RTE.IE states, "China has been known to go to extremes with either very assertive statements and prosecutions to complete radio silence," said George Zarya, CEO of Bequant crypto exchange in London. "This time the point was made very clear that China will not support cryptocurrency market development as it goes against its policies of tightening up control over capital flow and big tech," he said. The People's Bank of China (PBOC) said cryptocurrencies must not circulate as traditional currencies and that overseas exchanges are barred from providing services to mainland investors via the internet, cutting the likes of Coinbase and Binance off from the world's second-largest economy.”
What is cryptocurrency?
Simplilearn.com says, “A cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange. It is quite similar to real-world currency, except it does not have any physical embodiment, and it uses cryptography to work. Because cryptocurrencies operate independently and in a decentralized manner, without a bank or a central authority, new units can be added only after certain conditions are met. For example, with Bitcoin, only after a block has been added to the blockchain will the miner be rewarded with bitcoins, and this is the only way new bitcoins can be generated. The limit for bitcoins is 21 million; after this, no more bitcoins will be produced.”
Bitcoin stock(BTC USD) dropped nearly 10
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