- The People’s Bank of China revealed the effects of the country’s latest cryptocurrency ban on the financial markets.
- According to the released document, China’s share in the global Bitcoin transactions has decreased from over 90% to 10%.
- The document also stated that the recent ban on cryptocurrency has severely cracked down on illegal financial activities.
The People’s Bank of China (PBOC) claimed in a recent note that China’s share in global Bitcoin transactions has decreased significantly from over 90% to 10%.
On Wednesday, the Financial Stability Bureau of the Chinese Central bank released a detailed document discussing the nation’s latest cryptocurrency crackdown on the financial markets. China’s latest cryptocurrency crackdown led to all cryptocurrency exchanges in the country being completely eradicated, contributing to the curb around digital currency transactions.
PBOC stated in their note that they have “severely cracked down on illegal financial activities such as the disorderly handling of finances and illegal fundraising crimes.”
China has a history of introducing stringent cryptocurrency regulations and issuing crypto-related bans, dating all the way back to 2013 when the country prohibited banks from handling Bitcoin transactions. The country is among the few nations that maintain a passive stance towards cryptocurrency use since the beginning.
The 2013 ban was then followed by a ban on local cryptocurrency exchanges back in 2017, which forced the exchange platforms to close down their operations completely.
PBOC then geared up their regulatory efforts around digital assets when all cryptocurrency transactions were officially deemed illegal in the country in September last year – having the biggest impact on the Chinese cryptocurrency market to date.
The current trading volume of BTC in Chinese yuan has dropped down to near zero since August 2018. However, cryptocurrency traders in China are turning to the unregulated and decentralized DeFi space to trade bitcoin and other cryptocurrencies.
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