China Crypto Crackdown Showcases Global Unease With Asset Class

China’s ban on cryptocurrencies: debilitating blow, or just a minor battle lost in the larger war for acceptance? Investors are divided.

Digital currencies sold off after China’s central bank said all cryptocurrency-related transactions were illegal, according to a Q&A statement on the People’s Bank of China’s website. Bitcoin, the largest digital coin, fell as much as 8.9%, while Ether lost near 13%. The Bloomberg Galaxy Crypto Index, a gauge of some of the most-prominent cryptos, lost as much as 11%.

“It’s the latest move in a multi-year clampdown on Bitcoin and cryptocurrencies,” said Antoni Trenchev, managing ...