Chinese regulators have tightened restrictions that ban financial institutions and payment companies from providing services related to cryptocurrency, marking a fresh crackdown on digital coins. Many of the new rules expand on previous restrictions aimed at cryptocurrencies and close loopholes that had allowed some finance and payment firms to continue in the trade.
WHAT ARE THE NEW MEASURES? Three financial industry associations on Tuesday directed their members, which include banks and online payment firms, not to offer clients any services involving cryptocurrency, such as currency exchanges, registration, trading, clearing and settlement. The directives were made in a joint statement from the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China, and posted by the People s Bank of China (PBOC).
Bitcoin tumbled Wednesday from $45,600 to $38,570, its lowest since early February
Bitcoin plunged below $39,000 for the first time in more than three months Wednesday after China said cryptocurrencies would not be allowed in transactions and warned investors against speculative trading in them, despite the country powering most of the world s mining. The comments sent the unit diving more than 10 percent and dealt it another blow soon after being battered by comments from tycoon Elon Musk and his Tesla car company.
Trading in cryptocurrencies has been banned in China since 2019 to prevent money laundering as leaders try to stop people from shifting cash overseas. The country had been home to around 90 percent of the global trade in the sector. And in a statement, three state-backed industry associations said cryptocurrency prices have skyrocketed and plummeted, and cryptocurrency trading speculation activities have rebounded .
ChinaExplainer: What Beijingâs new crackdown means for crypto in China
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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
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Chinese regulators have tightened restrictions that ban financial institutions and payment companies from providing services related to cryptocurrency, marking a fresh crackdown on digital coins.
Many of the new rules expand on previous restrictions aimed at cryptocurrencies and close loopholes that had allowed some finance and payment firms to continue in the trade.
WHAT ARE THE NEW MEASURES?
Bitcoin took another tumble on Wednesday after regulators in China signaled a crackdown on cryptocurrency payments.
The decision saw bitcoin fall below $40,000 for the first time since February 2021, while other leading cryptocurrencies like Ethereum (Ether), Cardano (ADA), and Dogecoin all saw significant losses.
In a joint statement issued on the People’s Bank of China’s WeChat account, banking and internet industry bodies said that banks and online payment channels should not accept cryptocurrencies as payment or offer services related to them. It has not made it illegal for individuals to hold bitcoin or other cryptocurrencies. However, it will make it more difficult for people to buy cryptocurrencies using various payment channels.
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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