Bitcoin drops after PBOC said cryptocurrencies are not legal tender

An earlier version of this article attributed comments to an official. It was a China central bank report. The article has been corrected.

Cryptocurrencies came under pressure on Friday after the People's Bank of China said digital currencies were not legal tender in the country and spoke of a deeper crackdown. "Virtual currency-related business activities are illegal financial activities," according to a tranalsation of the statement on the People's Bank of China (PBOC) website Friday. The 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," it said. Bitcoin BTCUSD, -5.70% dropped over 5% and Ether ETHUSD, -7.76% dropped 9%.