China’s central bank has once again reiterated its warning against bitcoin and other cryptocurrencies, saying that they are not legal tenders and have no value.
The Chinese government has continued its conscious efforts to eliminate the use of cryptocurrencies in the country by constantly reminding the general public of the risks associated with them.
During a media briefing on August 27th, the deputy director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China (PBoC), Yin Youping, stated that digital assets are nothing but mere investment speculations, a local news outlet reported.
He warned investors to protect their “pockets” by staying away from any crypto-related transactions and increasing their awareness of the risks associated with such investments.
“We remind the people once again that virtual currencies such as Bitcoin are not legal tender and have no actual value support,” he said.
PBoC Working Hard to Stop Crypto Trading
Youping went on to say that the PBoC is taking drastic measures to ensure that crypto trading operations are halted by working with other top regulators to detect overseas exchanges and domestic traders and cracking down on every trading website, app, and corporate channel.
The PBoC is also planning to intensify its policy publicity and all other active channels to see that crypto trading is stumped out of the country. Yin Youping further disclosed that the Central Bank will introduce a system that normalizes the crackdown on crypto-related operations, encouraging the general public to report any such activities promptly.
China Imposes Nationwide Crackdown on Crypto
In the past few months, the Chinese government intensified its crackdown on the crypto industry to eliminate the presence of the rapidly growing market in the country.
Continuing its long history of FUD, the country’s central bank mandated all banking and financial services companies in China to stop serving both individual and institutional crypto clients or risk having their licenses revoked.
The restrictions adversely affected the crypto industry, with bitcoin losing more than half of its value after hitting an all-time high in April. But the Chinese authorities did not stop there.
The Great China Mining Migration
The industry suffered another massive blow when the world’s most populated nation decided to target bitcoin miners within its borders, forcing them to stop their operations.
Following the nationwide crackdown, the Bitcoin blockchain experienced four consecutive negative mining readjustments for the first time in about ten years.
China, which was once home to more than half of the world’s bitcoin mining community, pushed miners to relocate to other crypto-friendly countries.