Cryptocurrencies Tanked as a Result of China Central Bank Declaring ICOs Illegal

Bitcoin price temporarily dropped by 11% since July when the central bank of China declares the coin offerings are illegal.

Bitcoin, the digital market rising currency or so-called cryptocurrency drops 11% most in July.

This is due to China’s central bank declared that the initial coin offerings circulation is deemed illegal. Thus, they will take legal actions and penalized all digital token sales and offerings in the market.

This could be one of the biggest challenges the Bitcoin market is facing. According to People’s Bank of China, the investigation about the said illegalities of the digital market currency is already complete. Thus, they will move to implementing legal punishments and other actions related to the subject.

The bank also requested to Bitcoin companies and other organizations to provide refunds of their Bitcoin sales are part of the action taken. Moreover, there is still no specific way declared by the People’s Bank of China on how these refunds shall be conducted.

The bank pointed out that Bitcoin, its trading platforms, and other cryptocurrency circulating in the digital market should not be used as a form of regular or fiat currency. Furthermore, banks are prohibited to offer such coin services in the market.

An unsupervised growth of over $1.6 billion has been alarming to People’s Bank of China. Wherein, there has been no taxes paid to the government ever since the digital currency operation. More so, Bitcoins are a threat to the country’s financial market and its stability.

According to authorities, Bitcoins do not follow the traditional banking system, thus not officially recognized by the country’s financial market. The attention and support of the central banks have been called for to proliferate and take necessary actions against digital currencies.

Since the stir of cryptocurrencies, it shares drops and a lot of Bitcoin holders have postponed possible trading and acquiring in the market.