China bans financial and payment firms from cryptocurrency activities, Telecom News, ET Telecom
Beijing: China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions and has warned investors against speculative crypto trading.
Under the Chinese cryptocurrency ban, these institutions, including banks and online payment channels, must not offer customers any services that involve cryptocurrency, such as registration, trading, clearing and settlement, three industry organizations said in a joint statement Tuesday. âRecently, cryptocurrency prices have skyrocketed and fallen, and speculative trading has rebounded, seriously undermining the security of people’s property and disrupting normal economic and financial order,â the statement said.
China has banned cryptocurrency exchanges and initial coin offerings (ICOs), but has not stopped individuals from holding cryptocurrencies.
Institutions should not provide cryptocurrency savings, trust or pledging services, or issue cryptocurrency-related financial products, the statement also said.
The statement highlighted the risks of cryptocurrency trading, saying vital currencies “are not backed by real value”, their prices are easily manipulated, and trading contracts are not protected by Chinese law.
The three industry organizations are: China National Internet Finance Association, China Banking Association, and China Payment and Clearing Association.