All major cryptocurrencies, including bitcoin, crashed on Friday following a warning from China’s central bank. The People’s Bank of China, China’s central bank, has said that all digital currency activities are illegal and it will take action against them.
The Chinese bank has said that services such as trading, order matching, token issuance and derivatives for virtual currency are completely banned. Not only this, the bank has said that even foreign cryptocurrencies providing such services in China will not be considered legal.
The price of bitcoin reached $42,378. Similarly, the price of Ether, the world’s second largest cryptocurrency, fell by 8 per cent and XRP by 7 per cent.
China has taken a strict stance against cryptocurrencies several times before this. Before this, China has also taken strict action on crypto mining. It is believed that a lot of electricity is spent in crypto mining.
China’s central bank has also said that foreign exchanges serving domestic investors will be banned.