China bans cryptocurrency transactions in sweeping crackdown

China's central bank on Friday declared all transactions involving Bitcoin and other virtual currencies illegal, stepping up a campaign to block use of unofficial digital money.

The price of bitcoin, Ethereum and other cryptocurrencies slumped after reports of the crackdown. In morning trade, bitcoin was valued at $42,620, down from more than $44,000 the previous day, according to Coinmarketcap.

Chinese banks were banned from handling cryptocurrencies in 2013. In May, the Chinese Banking Association underlined that message, saying financial institutions should "resolutely refrain" from providing services using digital currencies because of their volatility.