The People’s Bank of China has imposed a ban on all cryptocurrency-related transactions, according to its Sept. 24 statement.
All business activities related to digital currencies are now deemed illegal in China.
However, there is no ban on cryptocurrency ownership.
The PBOC claims that it will bolster the monitoring of risks related to cryptocurrency trading.
China’s state planner also ramped up its clampdown on the cryptocurrency mining industry. It released a detailed plan on how to eliminate the industry in the country, requiring “proper disposal” of remaining mining farms.
This comes after virtually all major provinces imposed a paralyzing ban on Bitcoin mining in summer, forcing local miners to move abroad.
The Bitcoin price has shed 5% in mere minutes, dropping to an intraday low of $42,977 on the Bitstamp exchange.