Bitcoin And Other Cryptocurrencies Not Legal Tender, Reiterates China’s Central Bank

Table of Contents

• The Statement
• No Possibility Of Cryptocurrency Operations In China
• Central Bank Takes The Lead

China reiterated its stance against cryptocurrencies by sending out a stark reminder to the general population. The Chinese Central Bank called the transactions pure hype and asked the general public to increase their risk awareness and ideally stay away from cryptocurrencies and crypto transactions.

The Statement

At the media briefing for Financial Literacy Month 2021, Yin Youping, the deputy director of the Bureau of Financial Consumer Rights Protection of the People’s Bank of China, stated,

“We once again remind the general public that bitcoin and other virtual currencies are not legal tender and have no actual value support. The people should enhance their risk awareness, consciously stay away from cryptocurrencies and protect their investments.”

No Possibility Of Cryptocurrency Operations In China

The deputy director made the comments in response to a question about the possibility of cryptocurrency mining operations resuming in China. China’s central bank has been working with several departments to monitor cryptocurrency exchanges overseas and also at domestic traders of cryptocurrencies.

China has been cracking down on not just cryptocurrencies but any platform that enables the trading of crypto or provided any information about them. As a result, the country has banned several websites, mobile applications, and corporate channels that allowed access to or promoted cryptocurrencies. This has resulted in a significant decline in the popularity and the hype around cryptocurrencies in China.

Central Bank Takes The Lead

The Central Bank of China, as a member of the ministerial-level joint meeting on the disposal of illegal funds, actively cooperated with the CBRC, which was the lead department. The bank worked on monitoring and cracking down on individuals engaged in dealing with cryptocurrencies and on any activities that were being carried out in the name of cryptocurrencies.

Yin Youping also revealed that the central bank is working on a mechanism that will maintain pressure on cryptocurrencies and those engaged in dealing with them. It will also continue to combat all cryptocurrency-related trading operations and asked the general public to be vigilant and report any illegal crypto trading operation to the relevant authorities.

The comments and the proposed plan of action underline China’s stance on the total ban of cryptocurrencies and cryptocurrency mining operations on Chinese soil. China has seen an exodus of mining operations since the crackdown started.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.