China says all Bitcoin or crypto transactions are illegal, may ban crypto currencies 

China says that all crypto currency transactions are illegal, spooking Bitcoin and crypto investors and enthusiasts. It is believed that the move will be followed by a full ban on Bitcoin. 

China on Friday said that all crypto currency transactions in China, including transactions using Bitcoin, will be deemed illegal. China’s central bank in a note said that the country considers all crypto-currency transactions in the Chinese economy illegal.

Although the note, confirmed and reported by Bloomberg, stopped short of banning crypto-currencies this Chinese move effectively means that goods and services cannot be bought or sold in China using cryptocurrency. The country says that the cryptocurrencies like Bitcoin are not backed by any government or bank and that they cannot be used as legal tender.