On Friday, China stepped up its crackdown on virtual assets by banning all cryptocurrency transactions, in what has been noted as the country’s most powerful restriction on the sector so far. On Friday, the People’s Bank of China said in a statement that virtual currencies “are not legal and do not and cannot be used as currency in the market. “ They have the same legal prestige as fiat money, the central bank added, because they are issued through a non-monetary government and use encryption technology. The news caused bitcoin to fall to about $40,000 on Friday, a drop of about 6% in 24 hours, according to CoinDesk’s knowledge. Although cryptocurrency markets collapsed in the first place, the reaction to bitcoin’s value was tempered compared to past crackdowns, basically because the news was noted as a confirmation of past bans, said Wes Fulford, chief executive of Viridi Funds, an investment adviser. “We are seeing a decline in the prices of cryptocurrency market places, however, the reaction is weaker than past bans, as the market venue has already taken into account the threat that China will ban cryptocurrency transactions,” Fulford said in a note on Friday. By comparison, when China banned cryptocurrency mining for a weekend in June, bitcoin fell 11%. When it banned banks from transacting cryptocurrencies in May, the largest virtual asset fell 7%. Although there was a large accumulation of volume at the time of the news, only about 37% of bitcoin-U. S. The dollar volume was traded within two hours between five a. m. and 7 a. m. ET on Friday, according to the knowledge of cryptocurrency exchange Bitstamp. After which, costs recovered and volumes fell, Bitstamp said, indicating that markets largely processed the information. “It’s attractive to note, however, that this doesn’t seem to be a record day in terms of volume, not even in September,” Bitstamp said, adding that Sept. 24 ended up being the fourth volume day of the month. Memes have even circulated on social media, mocking China’s resolution as the latest in a series of measures dating back to 2013. “Nothing has created more wealth in the decade than the technologies banned in China. “ For Tim Frost, CEO of Yield App, a fintech app, the ban was expected. Anyone expecting a reversal, he said, will end up “disappointed. “ “China has made its intentions very, very clear: like all authoritarian regimes, it needs incredibly strict on all monetary activities in the country, and it needs 0 festival for its own virtual currency from the central bank,” he said via email on Friday. Compared to other countries, China has been several years ahead in its efforts to expand a central bank’s virtual currency. Six central banks are emerging or making plans to factor virtual currencies, according to the Bank for International Settlements, but none have complex plans like China.