The Chinese government is unmitigated in raiding cryptocurrencies such as Bitcoin, Ether, and others. After closing many Bitcoin mines, the government of the Bamboo Curtain Country declared that all transactions related to crypto money were illegal.
As quoted by SevenSubs from the Independent, the announcement was issued by the Central Bank of China and became the loudest in cryptocurrency raids. The value of cryptocurrencies such as Bitcoin also dropped following the announcement.
China calls all business activities using cryptocurrencies illegal. "All cryptocurrencies are not legal compensation and should not and cannot be used in the market as money," their statement reads.
Domestic or foreign institutions targeting Chinese citizens cannot use cryptocurrencies. However, so far, there is no prohibition for Chinese citizens to own the digital money.
According to Chinese authorities, cryptocurrencies are often used in criminal activities including fraud, pyramid schemes, money laundering and others. Previously, China also raided large-scale Bitcoin mines.
Recently, the Chinese government carried out mining and crypto trading raids in Hebei Province. What is the reason? As before, Bitcoin mining is considered harmful to the environment and not in accordance with China's target of reducing emissions in anticipation of climate change.
Earlier in June, the Bamboo Curtain Country closed Bitcoin mining in Sichuan province which is a favorite location for miners. Other areas affected at that time were the Inner Mongolia area and Yunnan Province. Crypto miners have gone out of business.