The Central Bank of China has issued a notice to the country’s financial institutions instructing them to stop processing cryptocurrency transactions. The disclosure stated that the People’s Bank of China (PBOC) aims to protect Chinese citizens and “combat speculation in Bitcoin and other virtual currency transactions.”
The People’s Bank of China asks banks to stop dealing with cryptocurrency exchanges and over-the-counter trading desks
- On June 21, 2021, the People’s Bank of China (PBOC) issued a notice on cryptocurrency transactions to a number of financial institutions.
- The People’s Bank of China stated that it has discussed cryptocurrency issues with financial service companies such as Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank, Industrial Bank and Alipay (China) Network.
- The People’s Bank of China emphasized that “virtual currency trading activities disrupt the normal economic and financial order, breed the risks of illegal cross-border transfer of assets, money laundering and other illegal and criminal activities, and seriously infringe the people’s property safety.”
- Chinese payment institutions and banks must strictly implement the guidelines on “Bitcoin risk”, “Token issuance financing risk” and other regulatory requirements in the detailed notice of the People’s Bank of China.
- The central bank added that financial institutions “must not provide account opening, registration and registration for related activities”.
- China Postal Savings Bank subsequently issued a statement and explained that it will not allow cryptocurrency transactions in any way.
- “According to the relevant regulations of the People’s Bank of China, no institution or individual may use our bank’s accounts, products, services and channels to conduct token issuance financing and’virtual currency’ transactions,” said China Postal Savings Bank.
- The Postal Savings Bank also stated that if Chinese citizens discover encryption activities or any virtual currency “related behavior, you can report to our bank.”
- The People’s Bank of China’s news came after Sichuan officials authorized a ban on Bitcoin mining in the area on June 20. Since the five major provinces of China were banned, Bitcoin’s computing power has plummeted to 100 exahash per second (EH/s).
- Chinese reporter Colin’Wu’ Blockchain also Tweet On Monday’s notice from the People’s Bank of China, it also stated that two other financial institutions had issued statements on the matter. “The Agricultural Bank of China has once again released the deleted webpage, and Alipay has also issued a related statement,” a reporter from the region said.
- After the People’s Bank of China announced the news, the price of Bitcoin (BTC) fell to a low of $31,700 per unit on Monday. Since then, crypto assets have successfully recovered above the $32,000 area.
What do you think of the latest announcements from the People’s Bank of China on crypto asset transactions and Chinese financial institutions? Please tell us your thoughts on this topic in the comments section below.
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