China Bans Financial Institutions from using cryptocurrency

China Bans Financial Institutions from using cryptocurrency

According to reports, China has banned payment companies and financial institutions from offering any services related to cryptocurrency transactions. Furthermore, it also warned investors from speculative crypto trading in the country.

According to a statement issued under the latest ban from China, such financial institutions, including online payments channels and banks, must not provide clients any service that involves cryptocurrency, such as trading, registration, clearing, and settlement on Tuesday.

According to the regulatory bodies, “Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”

This latest update means all the activities of cryptocurrency exchanges and initial coin offerings have been banned. However, individuals are not barred from holding cryptocurrencies.
The statement also highlighted that institutions shouldn’t offer saving, financial products, or pledging services of cryptocurrency in the country.

While highlighting the risks of cryptocurrency, it stated that virtual currencies don’t have any real value. Additionally, their prices can be easily manipulated, and contract trading is illegal as no Chinese law protects it.
The three regulatory bodies are the Payment and Clearing Association of China, the China Banking Association, and the National Internet Finance Association of China.

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