International News: China Extends Its Cryptocurrency Ban To Banks And Financial Institutions

The three industry bodies of China issue a statement reiterating the ban on cryptocurrencies in the country while extending it to Banks and other financial institutions.

Cryptocurrency has taken the financial industry by storm. Currencies like Bitcoin, Ethereum, Tether, Dogecoin and more have become the new way to trade. But several countries are now banning the use of these cryptocurrencies. One such country is China. China had previously banned the use of cryptocurrencies in the years 2013 and 2017. And now they have reiterated this ban by extending it to Banks and financial institutions.

The three industry bodies namely, the ‘National Internet Finance Association of China’, the ‘China Banking Association’ and the ‘Payment and Clearing Association of China’, had previously cleared their stance on banning the use of cryptocurrencies in China. Recently, they’ve issued a statement extending that ban to Banks, financial institutions and online payment channels.

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According to this statement, Banks and other financial institutions must not provide any services related to cryptocurrency transactions. These services that are banned include, registration, trading, clearing and settlement related to cryptocurrency. This is China’s latest attempt to clamp down on the digital trading market of cryptocurrencies that is rapidly flourishing throughout the world. Although, China has banned the exchange of cryptocurrencies and IOC (initial coin offerings), it hasn’t barred individuals from mining or holding cryptocurrencies.

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“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,” said the three industry body in the statement issued. “Virtual currency is a specific virtual commodity that is not issued by the monetary authority, has no monetary properties such as legal compensation and compulsion, is not a real currency, and should not and cannot be used as currency in the market.” read the statement.

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