China bans offering cryptocurrency services

Financial institutions and payment companies will not be able to work with this type of transaction

China announced a ban on financial institutions and payment companies to provide any type of service related to cryptocurrencies.

From now on, banks and online payment channels will not be able to offer their customers any services that relate to cryptocurrencies such as registration, trading, clearing and settlement.

“Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading has rebounded, seriously infringing on the security of people’s property and disrupting the normal economic and financial order,” the agencies said.

The statement also highlighted the risks of trading digital assets, saying that virtual currencies “are not backed by real value,” their prices are easily manipulated, and trading contracts are not protected by Chinese law.

The three industry bodies are the China National Internet Finance Association, the China Banking Association, and the China Payment and Clearing Association.

K. Tovar

Source: Reuters

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