China has introduced its toughest regulations over bitcoin and other virtual currencies, as all related virtual currency business activities, including “mining,” and overseas exchanges services for domestic residents, are deemed to be “illegal.”
On Sept. 24, China’s central bank issued a joint notice, with the Public Security Bureau and eight other departments, specifying that all virtual currency-related business activities are “illegal financial activities.”
Affected by China’s severe stance, the price of bitcoin encountered a steep drop at 4 p.m. on Sept. 26, plunging nearly $2,000 in one hour; Crypto-currency exchange company Huobi saw 22,000 bitcoins, equivalent to $930 million, transferred out in two days, according to China web portal site Sina.China affairs expert Li Yanming told The Epoch Times that the crackdown on virtual money should be part of the Xi Jinping regime’s overhaul of the financial system. “While competing with ex-leader Jiang Zemin’s faction for [the] ’money bag,' Xi still need to plug loopholes for capital flows to prevent the risk of instability in the financial system.”
