##  [# China Bans Trading Of Crypto](/sections/bitcoin-crypto/china-bans-trading-crypto) 

 

# China Bans Trading Of Crypto

 

 

The world’s second largest economy calls the asset class illicit.



 

 

 

 

 [![DanMika200x200.jpg](/sites/default/files/styles/author_image_icon/public/2023-02/DanMika200x200.jpg?itok=W3yFiWn- "DanMika200x200.jpg")](/contributors/dan-mika) 

[By Dan Mika](/contributors/dan-mika)

 Sep 24, 2021

 Edited by: Dan Mika

 

 

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China’s central economic authorities declared cryptocurrency trading and mining illegal overnight, a move that sent coins tumbling in Friday morning trading and could severely cut the growth prospects for cryptos as an asset class.

In a statement, the [**National Development and Reform Commission**](https://www.ndrc.gov.cn/xxgk/zcfb/tz/202109/t20210924_1297474.html?code=&state=123) and other state agencies primarily said the high energy use of mining projects was a “blind and disorderly” threat to its carbon reduction goals, and ordered an immediate halt to any current mining or mining rigs under construction.

Separately, the [**People’s Bank of China**](https://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4348521/index.html) said any domestic or off-shore trading or services using the assets are illegal, calling the “virtual currency trading hype” a financing vehicle for other illicit activity.

It’s unclear what the declaration means for Chinese citizens who currently hold cryptocurrencies.

The crackdown on crypto is the latest salvo in a campaign from Beijing to tighten control over its economy. In July, officials there [**ordered investigations**](https://www.etf.com/sections/features-and-news/china-internet-etf-craters-amid-govt-crackdown?nopaging=1) into ride-hailing app Didi and other tech firms that listed their shares on U.S. exchanges, and [**ordered**](https://www.reuters.com/world/china/china-tells-evergrande-avoid-near-term-dollar-bond-default-bloomberg-law-2021-09-23/) troubled property developer Evergrande to do whatever it takes to avoid a default on its near-term bonds and complete its ongoing apartment projects despite its $300 billion in liabilities.

[Bitcoin](https://www.etf.com/bitcoin-crypto/reports/BTC) fell 5.44% to $41,689 as of 10 a.m. Eastern Time, while [Ethereum](https://www.etf.com/bitcoin-crypto/reports/ETH) slid 8.35% to $2,850 per coin.

Several ETFs that hold companies in the crypto space also fell in early trading. The [**VanEck Vectors Digital Transformation ETF (DAPP)**](https://www.etf.com/DAPP) fell 5.51%, the [**Global X Blockchain ETF (BKCH)**](https://www.etf.com/BKCH) fell 5.28% and the [**Bitwise Crypto Industry Innovators ETF (BITQ)**](https://www.etf.com/BITQ) fell 4.78%.

The [**ARK Innovation ETF (ARKK)**](https://www.etf.com/ARKK) also fell 2.33%. The fund, led by longtime Bitcoin bull Cathie Wood, has 4.8% of its weighting in the crypto trading platform Coinbase.

*Contact Dan Mika at* [***dan.mika@etf.com***](mailto:dmika@etf.com)*, and follow him on* [***Twitter***](https://twitter.com/DanMikaTweets)



 

 

 [ Dan Mika ](/contributors/dan-mika) 

 

 

  Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in…   [View Bio](/contributors/dan-mika)

 



 

 


 Related Topics  [Bitcoin](http://www.etf.com/topics/bitcoin) 

 [China](http://www.etf.com/topics/china) 

 [Crypto](http://www.etf.com/topics/cryptocurrency) 

 [Blockchain](http://www.etf.com/topics/blockchain) 

 [Active Management](http://www.etf.com/topics/active-management)