China's central bank declared all cryptocurrency-related transactions illegal on Friday, and said foreign exchanges are banned from providing services to Chinese residents, in its strongest crackdown move yet on the digital asset industry.
Activities considered illegal cover a range of operations, such as buying and selling virtual assets as a central counterparty, and providing intermediary or pricing services for crypto transactions. It also includes token issuance financing, crypto derivatives transactions, and other activities suspected of illegal sale of tokens.
Bitcoin dropped 5.7% to about $41,110 in the wake of the announcement, according to data from CoinDesk. Ether lost 9% to hit $2,788, ada declined 3% to $2.16 and Ripple's XRP moved 7% lower to 92 cents. Dogecoin fell 8% to 20 cents.