The Chinese government is cracking down on Bitcoin and other cryptocurrencies. In a big step forward in its anti-crypto plans, which started in May, the People’s Bank of China has decided that crypto transactions are illegal and called for a formal ban of all Bitcoin and crypto-related transactions.
The People’s Bank of China says it’s concerned about national security and the safety of residents’ assets. Bloomberg reports that the country’s bank says that cryptocurrency isn’t a fiat currency, which means it isn’t a government-issued currency and is not backed by a commodity.
China is also looking to root out the mining of digital assets. Chinese officials are targeting crypto because of its possible ties to fraud, money laundering, and excessive energy usage. The country has a very concentration of the world’s crypto miners, which are using a considerable amount of energy. China is already facing a severe power crisis, and excessive mining isn’t helping.