Bitcoin, Ether recover days after China declares them illegal
Madrid, Sep 27 (EFE).- The world’s two largest cryptocurrencies, Bitcoin and Ether, were recovering Monday from the sharp falls they registered at the end of last week, when the Chinese government declared all transactions with cryptocurrencies on its territory illegal.
The announcement led Bitcoin, the world’s best-known cryptocurrency, to close down 5.38 percent on Friday to $40,735, while ether plummeted 9.22 percent to $2,736.
Although both cryptocurrencies recovered slightly on Saturday, with increases of just over 2 percent in both cases, they fell again on Sunday, Bitcoin by 2.12 percent, and ether by 2.24 percent.
The People’s Bank of China published a statement on Friday saying that cryptocurrencies have no legal tender status and declared virtual currency transactions “illegal” for disrupting economic and financial order.
The People’s Bank of China, along with nine other Chinese government institutions such as the Cyberspace Administration and the Ministry of Public Security, pointed out that virtual currency transactions facilitated several illegal criminal activities such as money laundering, illegal fundraising, fraud and pyramid schemes, among others.
The Chinese central bank said Bitcoin, Ethereum and other virtual currencies issued by non-monetary authorities do not have the same status as the legal tender of the country and therefore cannot circulate in the market as currency. EFE