China outlawed all bitcoin transactions

The Central Bank of China will make it a crime to trade bitcoins and other cryptocurrencies.

“Business related to virtual currencies is considered illegal financial activity,” the People’s Bank of China said. They believe that cryptocurrencies “endanger” the assets of the country’s population.

At the same time, China is one of the largest markets for cryptocurrencies in the world, as well as one of the largest “miners” of them.

So, changes in the Chinese market will certainly affect the global virtual currency market.

This also happened after the announcement that from now on bitcoin is illegal in China.

Immediately after the announcement of the Chinese central bank, its value fell by more than $ 2,000.

This is the last, but far from the first, step taken by the Chinese authorities, which are trying to curb processes that, as they believe, are at best associated with speculative investments, and at worst – with money laundering.

In general, cryptocurrency trading was officially banned in China back in 2019, but in fact it continued online due to overseas marketplaces.

Mining-migration

The technology behind most cryptocurrencies, including Bitcoin, is that many computers verify and confirm transactions with it in the giant database from which the blockchain is built.

There are new “coins” to “reward” those who participate in this process, which is called “crypto mining”.

China, with its relatively low prices for electricity and computer equipment, has been one of the world’s centers for “mining” cryptocurrencies for a long time.

The decision of the Chinese authorities over the past years has undermined the “mining” industry.

If in September 2019 China accounted for 75% of the world’s energy use for bitcoin mining, by April this figure fell to 46%.