China is ramping up efforts to completely ban the use of cryptocurrencies within the country.

Earlier today, the central bank of China announced that all transactions related to cryptocurrencies are now illegal — sending shockwaves across the industry.

Key Highlights

• Cryptocurrency services offering trading, order matching, token issuance, and derivatives for virtual currencies are now illegal in China.
• Ten agencies, including the central bank as well as banking, securities, and foreign exchange regulators, vowed to work together to completely eliminate "illegal" cryptocurrency activity.
• This move comes as China continues its nation-wide crackdown to eliminate cryptocurrencies from its economy due to complications arising from fraud, money laundering, and excessive energy usage.
• Bitcoin's value fell by 6% at the wake of the announcement, falling to $41,800.

Why It Matters

• Cryptocurrency is garnering increased resistance from governments across the world due to its disruptive effect on capital flow.
• Cryptocurrency volatility is also largely sentiment-based, largely affected by government regulations across countries.
• Aside from Bitcoin, nearly every major cryptocurrency's value has plummeted in the wake of China's announcement.
  
• China was home to a large number of crypto-miners, many who have been migrating their operations outside of the country, or shutting down their mining farms entirely.