China to tighten regulations on cryptocurrency trading, mining

Crackdown includes prohibiting trade, token issuance, banning overseas exchanges' services to Chinese residents.

China to tighten regulations on cryptocurrency trading, mining

China’s central bank announced on Friday that it will tighten regulation on cryptocurrency activities, including trading and mining, as Beijing intensifies its crackdown on digital coins.

"China's central bank and nine other government departments have jointly released a notice to further forestall and handle the risks related to virtual currency trading and speculation," according to Chinese state-run Xinhua news agency.

"China will step up its crackdown on virtual currency mining as part of the nation's efforts to save energy and cut carbon emissions ... The country will intensify regulation over the whole process of virtual currency mining and strictly prohibit new mining projects," the agency said, adding: "Virtual currency mining is energy-intensive, produces high carbon emissions and contributes little to the economy."

The People’s Bank of China's other regulations on the market include prohibiting the trade, token issuance and derivatives for cryptocurrencies.

It will also begin considering overseas cryptocurrency exchanges that offer services to domestic residents in China as an illegal financial activity.

In addition, financial institutions, non-bank payment companies, and internet firms will be banned from facilitating cryptocurrency trading.

The Chinese government's regulations on crypto market have become more common recently.