China issues warning for crypto traders amidst Bitcoin bears

People’s Bank of China (PBoC) has issued a warning for crypto-related businesses operating in the country.

Chinese central bank issues warning for crypto users

Bitcoin bears seem to have taken control of the markets as price nosedives by nearly 3,000 dollars in just one month. The price was close to 10,000 dollars when China’s president Xi Jinping called the country to support blockchain adoption; however, since then, Chinese policies have taken a turn for the worse.

China appears to follow a policy of “Blockchain not Bitcoin”, and while things are looking good for blockchain, they certainly aren’t for crypto assets. The price of Bitcoin fell down to 6,600 dollars with traders and investors looking uncertain about the future.

Perhaps people were thinking that China would legalise crypto trading seeing as it was welcoming its hot technology. However, things turned out differently as Chinese officials have shut down nearly 40 blockchain firms in Shenzhen province for facilitating crypto trading.

Now PBoC has issued a statement regarding the government’s clampdown on crypto. The statement outlined all crypto activities that are deemed illegal in the country as a warning to people across the nation.

The statement warned that all public crypto offerings were illegal and will be considered similar to”illegal fund-raising, financial fraud, pyramid schemes and other illegal crimes.” It added that Shanghai’s law enforcement would rectify the crypto trading platform “which can be registered overseas” immediately.

Lastly, it stated that investors must not mix blockchain with crypto while noting that the latter had many risks attached to its trading and issuance.