Warning that cryptocurrencies such as Bitcoin and Ethereum "seriously endangers the safety of people's assets", the People's Bank of China (PBOC) announced that all transactions of cryptocurrencies are now illegal. The PBOC also ordered banks and other institutions like Alibaba's affiliate group, Ant Group, to cease providing cryptocurrency-related services. Following the announcement, the price of Bitcoin dropped about 2,000 United States dollars while several stocks with heavy exposure to cryptocurrencies like Coinbase, Riot Blockchain, and Microstrategy also dipped in price.

While cryptocurrency trading was officially banned in China since 2019, foreign exchanges continued to offer service. However, in the latest statement, the People's Bank of China said that all those involved in "illegal financial activities" will be prosecuted, and that foreign websites providing services to Chinese citizens is also a crime. The National Development and Reform Commission of China reports that the government will develop "new systems" to counter risks posed by cryptocurrencies, and will gradually shut down cryptocurrency mining operations. No new commercial mining projects will be permitted.

Meanwhile, the People's Bank of China is also working on its own digital currency. The PBOC has already trialed the digital yuan in several regions, and is attempting to be a leading contender in a race towards releasing a central bank-issued digital currency.

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