China has widened its clampdown on cryptocurrencies by declaring all activities related to digital coins ‘illegal’. The People’s Bank of China and other government agencies specifically targeted overseas crypto exchanges, stating that it was illegal for them to provide online services to residents in China, reports the Financial Times.
The PBoC announced the crackdown on Friday in a notice issued jointly with nine other government bodies including the Cyberspace Administration and the Supreme People’s Court, China’s top court. The move was an apparent bid to close a loophole that remained after the PBoC, China’s central bank, banned domestic financial institutions from providing cryptocurrency transaction services in May.
In the months since, Chinese traders have continued to invest in cryptocurrency using foreign platforms. The price of bitcoin fell more than 8% immediately after the announcement, dropping to just over $41,000.