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China’s Central Bank Forbids Banks and Payment Providers to Deal with Crypto-Related Businesses

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Mon, 21/06/2021 - 10:18
China’s Central Bank Forbids Banks and Payment Providers to Deal with Crypto-Related Businesses
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According to Bloomberg Terminal and Chinese crypto journalist Colin Wu, the People’s Bank of China has talked to several major banks and payment providing firms in the country, requesting them to stop providing services to businesses related to digital currencies.

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Chinese crypto ban getting worse still

The article shared by the Central Bank of China (PBOC) says that the governing financial institution has talked to five major banks in the country - Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Postal Savings Bank of China, Industrial Bank – and Alipay regarding the issue of the hype that’s been building around cryptocurrencies this year.

The result of this talk was that the PBOC claimed that cryptocurrency trading is disrupting the usual financial and economic order in the country, raises risks of illegal funds transfers, money laundering and other unlawful activities.

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No banking services, products for crypto companies in China now

The central bank top reps also added that cryptocurrencies are jeopardizing people’s safety in China.

From now on, banks have to strictly conduct KYC procedures and are forbidden to open accounts for crypto-trading firms. They must also refuse crypto-related businesses for trading, clearing and settlement.

This requirement of the PBOC also goes for other banks in China.

The aforementioned banks and companies have agreed not only to follow the received directions, but to also increase investigation of crypto trading companies and clamp down on activities that help increase hype around virtual currencies in general and crypto trading in particular.

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