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What Beijing s new crackdown means for crypto in China SHANGHAI :Chinese regulators have tightened restrictions that ban financial institutions and payment companies from providing services related to cryptocurrencies, marking a fresh crackdown on digital money.
FILE PHOTO: A small toy figurine is seen on representations of the Bitcoin virtual currency displayed in front of an image of China s flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration 3 related media assets (image or videos) available. Click to see the gallery.
19 May 2021 09:05PM Share this content
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SHANGHAI -Chinese regulators have tightened restrictions that ban financial institutions and payment companies from providing services related to cryptocurrencies
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The regulatory bodies came together to reiterate the crypto ban amid the high volatility of crypto resulting in losses among citizens.
Three regulatory bodies in China have released a report to bolster the crypto ban on financial institutions. The associations, including the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China, released a report on the crypto ban on the 18th of May. The report reinforces the China crypto ban that was formerly introduced in 2013 and then 2017.
In 2013, the People’s Bank of China (PBoC), the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission came together to issue a “Notice on preventing Bitcoin risks.”
China bans financial, payment institutions from cryptocurrency business
Reuters | May 18, 2021 09:06 PM EDT
A small toy figurine is seen on representations of the Bitcoin virtual currency displayed in front of an image of China s flag (Photo : REUTERS/Dado Ruvic/Illustration)
China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading.
It was China s latest attempt to clamp down on what was a burgeoning digital trading market. Under the ban, such institutions, including banks and online payments channels, must not offer clients any service involving cryptocurrency, such as registration, trading, clearing and settlement, three industry bodies said in a joint statement on Tuesday.