Bitcoin dropped upwards of 9% on Friday morning following the news

Source: CULLEN MCCUE

On Friday morning, China reiterated their intention to crack down on cryptocurrency. Ten Chinese government agencies, including the central bank, said in a joint-statement that they would intensify a “high-pressure” crackdown on cryptocurrency trading.

The People’s Bank of China said cryptocurrencies must not circulate in markets as traditional currencies and that overseas exchanges are barred from providing services to mainland investors via the internet. The news caused crypto markets to tumble on Friday morning.

The value of the world’s cryptocurrencies dropped to a low of about $1.8 trillion as of 7:15 a.m. ET, falling about 9% just hours following China’s statement. Bitcoin dropped roughly 9% while Ethereum fell upwards of 11%. Smaller coins, including XRP, suffered similar drops. (READ MORE: Globalists Launch Attacks on Bitcoin, Senate Witness Says ‘Make Bitcoin Criminal’)

Chinese banks were banned from handling cryptocurrencies in 2013, but the government issued a reminder this year. China’s State Council vowed in May to to crack down on bitcoin mining and trading as in order to fend off financial risk. The People’s Bank Of China also barred financial institutions, payment companies and internet firms from facilitating cryptocurrency transactions.

“Virtual currency derivative transactions are all illegal financial activities and are strictly prohibited,” the People’s Bank of China said on its website. “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 statement continued. (READ MORE: Trump Calls For ‘Scam’ Bitcoin To Be Regulated ‘Very, Very High’ For ‘Competing Against The Dollar’)

The People’s Bank of China is developing an electronic version of the yuan for cashless transactions that can be monitored. Some analysts suggest that the Chinese government is aiming to quash decentralized digital assets while it promotes the government-backed digital currency.