1121 GMT October 28, 2021
Ten agencies, including the central bank as well as banking, securities and foreign exchange regulators, vowed to work together to root out "illegal" cryptocurrency activity, the first time the Beijing-based agencies have joined forces to explicitly ban all cryptocurrency-related activity, Reuters reported.
The People's Bank of China (PBOC) said cryptocurrencies must not circulate as traditional currencies and that overseas exchanges are barred from providing services to mainland investors via the internet, cutting the likes of Coinbase and Binance off from the world's second-largest economy.
The PBOC also barred financial institutions, payment companies and internet firms from facilitating cryptocurrency trading nationally.
The Chinese government will "resolutely clamp down on virtual currency speculation, and related financial activities and misbehavior in order to safeguard people's properties and maintain economic, financial and social order", the PBOC said in a statement.
Bitcoin, the world's largest cryptocurrency, dropped over 6% to $42,216 on the news, having earlier been down about 1%.
Smaller coins, which typically rise and fall in tandem with bitcoin, also tumbled. Ether fell 10% while XRP dropped a similar amount.