China declares all crypto-related transactions illegal and forbids overseas exchanges from serving its citizens.
The PBOC said all crypto-related transactions are not allowed under the law.
Activities considered illegal cover a range of operations, such as buying and selling virtual assets as a central counterparty, and providing intermediary or pricing services for crypto transactions. It also includes token issuance financing, crypto derivatives transactions, and other activities suspected of illegal sale of tokens.
"Those who carry out related illegal financial activities that constitute a crime shall be investigated for criminal responsibility in accordance with the law,"
China's market regulators and the Ministry of Public Security said cryptocurrency is "disrupting the economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, and money laundering, and seriously endangering the safety of people's property."
How will this impact Bitcoin and other cryptoprojects?? What do you think guys?
I think due to the very decentralized nature of Bitcoin that this will have less effect than the Chinese authorities would hope and may actually help wider adoption by Chinese citizens in general. They now know that it is a legitimate threat, which means it has reached critical mass and is now scaring the government so much that they choose to ban it. That means that if anyone is able to get hold of Bitcoin they may have a means to get money out of the country which is out of the reach of the CCP. It seems that this is turning into a big bonus for Bitcoin because there is a lot of money flowing around that country right now and looking for a way out.