China’s central bank say all crypto activities are illegal: What you need to know

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China’s central bank has renewed its tough stand against cryptocurrencies. It said on Friday that all crypto-related activities are illegal and it will make sure to crack down on these activities. China’s cabinet vowed to crack down on these activities back in May

On its website, the central bank said that cryptocurrencies must not circulate in markets as traditional currencies and that overseas exchanges are barred from providing services to mainland investors via the internet. It further said that along with other departments in China, including the securities and foreign exchange regulators, it would maintain a "high-pressure" crackdown on speculative trading of cryptocurrencies.

The People’s Bank of China also barred financial firms, payment companies, and tech firms from offering services related to crypto and called for increased censorship of information related to crypto.

PBOC said, “Overseas virtual currency exchanges that use the internet to offer services to domestic residents are also considered illegal financial activity. Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies.”

The price of Bitcoin, the largest cryptocurrency, tanked by 5% on the news, last trading at around $42,707.