--- title: "China Makes Crypto Transactions Illegal, Prompting Bitcoin Market Crash" description: "China has declared all" date: "2021-09-24" modified: "2021-09-24" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/china-makes-crypto-transactions-illegal-bitcoin-crash" categories: - "Bitcoin" - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "bitcoin" - "china" - "cryptocurrencies" - "the digest" --- # China Makes Crypto Transactions Illegal, Prompting Bitcoin Market Crash ![China has declared all cryptocurrency transactions and any other related activities within its borders illegal, sending Bitcoin plummeting yet again.]() *\Image: Futurism\* ## Crypto Crackdown China has [declared all cryptocurrency transactions]() and any related activities within its borders illegal — a massive crackdown that has sent Bitcoin plummeting yet again. The cryptocurrency fell from highs of [just over $45,000]() early Friday morning down to under $41,000 around 7 am Eastern. The People’s Bank of China made the announcement in a [Q&A posted to its website](). "Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity," the post reads, as [translated by *CNBC*](). Those working for foreign crypto exchanges will also be investigated. The Bank also announced it is improving its systems to monitor crypto-related activities. Basically, crypto appears to be over in China, at least for the time being. ## Stamping It Out The news comes after China [started cracking down]() on cryptocurrency mining in May, days after [banning all financial institutions]() and payment companies from doing any business related to cryptocurrencies. The Chinese government will "crack down on bitcoin mining and trading behavior, and resolutely prevent the transfer of individual risks to the society," according to a statement at the time, as [translated by the *South China Morning Post*](). Just like today, the previous crackdowns also led to Bitcoin slipping, caused by mass sell-offs. Its value [has fallen]() by roughly half between April and July this year, [*Bloomberg* reports](). The government has maintained that it's also cracking down on energy-intensive cryptocurrency mining activities to meet its aggressive carbon goals. The country is planning to become [carbon neutral by 2060](). ## Cat and Mouse Cryptocurrency businesses weren't shocked by this week's announcement. "The Chinese regulators have always been extreme in their views and these comments are not new," said Vijay Ayyar, head of Asia Pacific with cryptocurrency exchange Luno in Singapore, told *Bloomberg*. Intriguingly, the continued announcements may indicate that China is having a tough time completely stamping out cryptocurrency activity. "The interesting part is also why they continue making these statements," Avyar added. "Its probably because they sense continued unabated activity in China and hence having to go on an overdrive." **READ MORE:** [Bitcoin tanks 8%, ethereum drops 11% as China intensifies crackdown on cryptocurrencies]() \[*CNBC*\] **More on Bitcoin:** *[Bitcoin.org, Which Taught Users Not to Get Scammed, Gets Hacked and Replaced With Scam]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()