As Himalaya Coin Is About to Go Public, Communist China Declares That Virtual Currencies Are Illegal to Trade and Propagate

The Wall Street Journal (WSJ) reported on September 24, China’s central bank stated that all cryptocurrency-related transactions are illegal financial activities, reinforcing the Communist government’s tough stance on digital currencies issued unofficially.

The latest notice issued by the central bank aims to further prevent risks related to cryptocurrency transactions and maintain national security and social stability, according to an announcement posted on the website of the Communist China’s central bank on Friday afternoon.

The price of Bitcoin fell as much as 5 percent after the announcement.

On September 24, China’s central bank stated that all cryptocurrency-related transactions are illegal financial activities, reinforcing the Communist government’s tough stance on digital currencies issued unofficially.

The notice points out that virtual currencies do not have the same legal status as legal tender. Bitcoin, Ethereum, TEDA and other virtual currencies have the main features of being issued by non-monetary authorities, using cryptographic technology and distributed accounts or similar technology, and existing in digital form, etc. They are not legally reimbursable and should not and cannot be circulated as currency in the market.

What’s even more ridiculous is that the CCP further calls for accountability for the domestic staff of the relevant “offshore” virtual currency exchanges, as well as legal persons, unincorporated organizations and natural persons who provide marketing and promotion, payment and settlement, technical support and other services for them even though they know or should know that they are engaged in virtual currency-related business.