Bitcoin was trading 0.54% lower early Saturday, one day after Chinese regulators said all crypto-related activities are illega
The price was around $42,850 per coin, while rivals Ethereum and Dogecoin were trading around $2,945 (+0.87%) and 21 cents (+0.55%) per coin, respectively, according to Coindesk.
Following the announcement from the People’s Bank of China, Bitcoin dropped nearly 6% to around $41,700 per coin, while Ethereum and XRP dropped 8% to around $2,800 per coin and 7% to 91 cents per coin, respectively, according to real-time price tracking by Coindesk.
A notice from the People’s Bank of China on Friday complained Bitcoin, Ethereum and other digital currencies disrupt the financial system and are used in money laundering and other crimes.
“Virtual currency derivative transactions are all illegal financial activities and are strictly prohibited,” the People’s Bank of China said on its web.
Under terms of the note published by the government, banks and other financial institutions are banned from offering services related to crypto, including transactions of fiat to crypto currencies, or from one crypto to another. Anyone facilitating trades is subject to legal prosecution, including those individuals who live inside China but work for off-shore crypto exchanges that provide service to China.