Why Crypto Is Under Pressure on Friday

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China has declared all cryptocurrency transactions illegal, causing a big slump in the price of cryptocurrencies like Bitcoin, Ethereum, and others.

Bitcoin and Ethereum both have fallen over 7% so far.

On Friday, the People's Bank of China (POB) announced a blanket ban on crypto trading declaring digital transactions illegal.

"The notice clearly stated that virtual currency exchange, virtual currency trading as a central counterparty, provision of matching services for virtual currency transactions, token issuance financing, and virtual currency derivative transactions are all illegal financial activities and are strictly prohibited,” said People’s Bank of China, in a statement.

The POB's statement, which was dated Sept. 15, said digital currency is “disrupting the economic and financial order” and also breeding “illegal and criminals activities.”

"The PBOC has been developing its own state-backed digital currency system, known as DCEP (Digital Currency Electronic Payment) for a number of months, that officials aim to use as a replacement for paper and coins in the world's second-largest economy," writes TheStreet's Martin Baccardax.

Related: China Issues Blanket Ban On Cryptocurrency Trading; Bitcoin, Coinbase, Robinhood Slide

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