to smaller coins were tumbling Friday after the People’s Bank of China said all crypto-related transactions were illegal and must be banned.
Bitcoin, the world’s largest digital currency, dropped 5.7% to $41,194, Ethereum sank 10.2% to $2,757,
fell 8.5% and Cardano was down 5.7%.
“Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies,” the People’s Bank of China said in a statement on its website Friday.
The PBOC added that online cryptocurrency services to Chinese residents by “overseas virtual currency exchanges” also are considered “illegal financial activity.”
Crypto-related stocks followed Bitcoin lower early Friday.
(ticker: MARA) was down 7%,
(RIOT) tumbled 7.2%,
(BTBT) declined 7.8%. Crypto exchange
(COIN) fell 3.9%.
The Chinese government has been getting tougher on cryptocurrencies. Earlier this year, it directed banks to strengthen existing bans on trading in the digital currencies.
Back in June, China’s central bank said cryptocurrency services “disrupt financial stability and increase the risk of illicit activities such as cross-border asset transfers and money laundering.” Institutions must refrain from providing cryptocurrency-related services, the PBOC said at the time.
The Chinese government also has cracked down on so-called cryptocurrency mining across the country.
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