China deems all cryptocurrency transactions illegal

China’s central bank declared on Friday that all cryptocurrencies are illegal, banning crypto-related transactions and cryptocurrency mining, according to Reuters.

Why it matters: China’s government is now following through with its goal of cracking down on unofficial virtual currencies, which it has said are a financial, social and national security risk and a contributor to global warming.

  • The People’s Bank of China said cryptocurrencies, including Bitcoin, Ethereum and Tether, can’t circulate in markets and banned foreign exchanges from operating in the country, Reuters notes.

By the numbers: The price of Bitcoin has fallen almost 4% in the past 24 hours, while Ethereum has dropped by more than 8%, according to Coinbase.

Go deeper: U.S. Treasury sanctions cryptocurrency exchange over ransomware transactions