China declared all cryptocurrency transactions illegal and causes Bitcoin crash

This Friday, the Central Bank of China tightened the measures and declared all cryptocurrency transactions illegal also for payment companies and Internet companies. It prohibited foreign exchanges from providing services to Chinese investors to facilitate cryptocurrency trading through the web. "All cryptocurrencies, including Bitcoin and Ether, are not fiat currency and cannot circulate in the market," the People's Bank of China stressed on its website, as they "Seriously endanger people's wealth." In the statement, the entity detailed that "All transactions related to cryptocurrencies, including services provided by foreign exchanges to national residents, are illicit financial activities." " trade and speculation with Bitcoin and other virtual currencies has spread, altering the economic and financial order, increasing money laundering, illegal fundraising, pyramid schemes and other criminal activities and illegal, " said the Central Bank of China. A Forbes article notes that Bitcoin options contracts , which enable investors to buy or sell the cryptocurrency at a specific value within a specified period of time, expire this Friday. "The early expiration of Bitcoin options could trigger an outbreak of volatility in prices, since the previous large expirations attracted the attention of investors," detailed the specialized site ABMCrypto.