China asks banks to block crypto transactions

China Bitcoin Ban

The anti-crypto bias levels up a notch! China has told the major financial institutions in the country to stop facilitating virtual currency transactions and block such transactions at the source.

All cryptocurrency related activities are now forbidden at Chinese banks.

China’s central bank, the People’s Bank of China (PBOC) has issued a notice on Monday to a number of financial institutions, with the organization saying that it has discussed the issue of cryptocurrencies with financial services firms in the country.

These include firms like the Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank, Industrial Bank, and the Alipay (China) Network.

And with the aim to protect Chinese citizens and combat the speculation of Bitcoin and other virtual currency transactions, the central bank has instructed payment institutions and banks to implement strict guidelines on the regulatory requirements that the notice details.

These include financial institutions taking steps to not provide account opening, registration, and registration for related activities.

They also have to make sure to identify the capital accounts of virtual currency exchanges and over the counter dealers, and cut off the payment link for transaction funds in a timely manner.

The PBOC notice stresses that virtual currency trading activities disrupt the normal economic and financial order, breed the risk of illegal cross-border transfer of assets, money laundering and other illegal criminal activities, and seriously infringe the safety of people’s property.

According to journalist Colin Wu, a number of institutions in China released statements explaining that they will not allow cryptocurrency transactions in any manner. These include the Postal Savings Bank, the Agricultural Bank of China, and Alipay.

This latest diktat from the PBOC comes after the Chinese government amped up its crackdown on crypto mining activities. The Asian nation also rocked the crypto markets last month, when it reiterated the long-held ban on cryptocurrency trading and mining.

Expect something similar now.

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