|

China's central bank to businesses: Correct improper actions with cryptocurrencies or exit

  • Business engaged in unlawful cryptocurrency business will have to amend their actions or leave China.
  • Investors are cautioned against confusing cryptocurrencies and blockchain technology.

The central bank of China, the People’s Bank of China (PBOC) has issued a stern warning against “problematic” firms that have been unlawfully engaging with cryptocurrencies. The directive is for these firms to correction their improper actions or leave the country.

These ‘problematic firms’ according to a report by Bloomberg have engaged in or conducted publicity campaigns while some have served offshore cryptocurrency exchanges. The central bank said that it is going to regulate the industry.

As has been the norm, the statement cautioned investors not to confuse between cryptocurrencies and the blockchain technology. According to the regulator, cryptocurrencies carry with them immense risks. The risks range from the issuance of the coins, the funding required as well as the trading.

The PBOC is still studying and testing its soon to be launched digital currency. The central bank issued coin will operate side by side to the fiat system in the beginning but should eventually phase out paper money.

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

More from John Isige
Share:

Editor's Picks

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Bitcoin Weekly Forecast: BTC hits 20-month low, will the pain continue?

Bitcoin recovers slightly, trading at $66,000 on Friday after reaching a new yearly low of $58,115 earlier this week, its lowest level since October 2024. Institutional selling intensified as spot ETFs recorded $1.35 billion in net outflows through Thursday.

XRP clings to $1 as long liquidations deepen bearish trend

Ripple trades near the key psychological support level of $1 at the time of writing on Friday after losing more than 8% so far this week. CoinGlass liquidation data shows that over 97% XRP long positions were wiped out over the past 24 hours.

Pi Network Price Forecast: Minor recovery amid market crash fuels short-term hope

Pi Network price records a mild 3% recovery at press time on Friday, shaping a rebound from a broken descending trendline. The declining trend in trading volume has stabilized around $10 million this week, supporting the possibility of an extended recovery as selling pressure wanes.

Bitcoin: BTC hits 20-month low, will the pain continue?
Bitcoin (BTC) recovers slightly, trading at $66,000 on Friday after reaching a new yearly low of $58,115 earlier this week, its lowest level since October 2024. Institutional selling intensified as spot Exchange Traded Funds (ETFs) recorded $1.35 billion in net outflows through Thursday.