China calls all cryptocurrency-related transactions illegal

China's central bank on Friday said that all cryptocurrency-related transactions are illegal in the country and they must be banned, citing national security and "safety of people's assets."

10 Chinese government agencies said they will work closely to maintain a "high pressure" crackdown on trading of cryptocurrencies in the nation.

The surge in usage of cryptocurrencies has disrupted "economic and financial order," and prompted a proliferation of "money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities," the agencies said in a statement.

Offenders will be "investigated for criminal liability in accordance with the law," the Central bank said.

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 People's Bank of China said in a statement.

The country is currently home to some of the world's largest crypto mining services. The move has panicked the cryptocurrency-related traders and business people.