SHANGHAI (Reuters) -China intensified a crackdown on cryptocurrency trading on Friday, vowing to root out “illegal” activity in trading of bitcoin and other virtual currencies and issuing a nationwide ban on cryptocurrency mining.

China’s State Council (or cabinet) pledged in May that it would crackdown on cryptocurrency mining and trading to reduce financial risk.

Ten Chinese agencies, which include the central bank and banks, foreign exchange regulators and securities regulators said that they will cooperate to prevent speculative cryptocurrency trading.

According to the People’s Bank of China, cryptocurrencies cannot circulate on markets like traditional currencies. Also, overseas exchanges can’t provide services for mainland investors through the internet.

The PBOC banned cryptocurrency traders from financial institutions, internet companies, and payment companies.

According to the People’s Bank of China, “resolutely clampdown on virtual currency speculation and associated financial activities and misbehaviour, in order to protect people’s property and maintain economic and financial order”, a statement was posted on their website.

According to the National Development and Reform Commission, it is launching an extensive crackdown against cryptocurrency mining. Local governments had previously issued restrictions.

The world’s most popular cryptocurrency dropped by as high as 5% following the PBOC announcement. It had previously fallen about 1%.