20 July 2026
Central Bank Of China Vows Harsh Crackdown Against Crypto Activity
The central bank of China has again started its tough talk on Bitcoin, by calling all digital currency activities illegal and taking harsh vows to crack down on the market.
In a Q&A posted to its website, the People’s Bank of China claimed that services offering to trade, order matching, token issuance, and derivatives for virtual currencies are strictly prohibited. Adding further, the PBOC emphasized that global Crypto exchanges providing services in mainland China are also illegal.
According to a CNBC translation of the comments, the central bank of China affirmed that “Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity.”
Adding further, PBOC said that workers of foreign Crypto exchanges will also be investigated. Apart from this, PBOC claimed that it has improved its systems to step up monitoring of Crypto-related transactions and root out speculative investing.
Reiterating past comments, the bank said that, “Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies.”
Besides, the price of Bitcoin sank about 4% on the news, the last trading at around $42,378. Whereas, Ethereum, the second-largest digital asset, fell over 8% to $2,868.
Although, it is not the first time China has gotten tough on Cryptocurrencies. Earlier this year, Beijing had announced a crackdown on Crypto mining, the energy-intensive process that verifies transactions and mints new units of currency. That led to a sharp slump in Bitcoin’s processing power, as multiple miners took their equipment offline.
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