The People's Bank of China said all crypto-related transactions are illegal, Bloomberg News reported Friday.
The announcement was published on the PBOC's website and signed by the PBOC and a number of other Chinese regulatory bodies. In the post, the authorities said that virtual currency-related business activities were illegal financial activities, adding that they are now strictly prohibited. The rules will affect businesses outside of China, too: The statement also said that the provision of such services by overseas exchanges to Chinese residents via the internet was also illegal.
The value of bitcoin has fallen by 2.9% in the past 24 hours. Ethereum's value fell by 7.4% in the same period.
Chinese regulators appear ready to enforce these rules, having established a system of coordinating between government departments. In the statement, regulators promised to crack down on crypto activity.