According to Bloomberg news agency and China crypto journalist Colin Wu, the People’s Bank of China spoke with several of the country’s major banks and cryptocurrency payment providers, asking them to stop providing services to crypto-related companies.
China’s crypto ban is getting worse:
From what was stated in the article published by the Central Bank of China (PBOC), the government financial institution has spoken to five major banks in the country, which are:
- Industrial Bank.
- Chinese commercial.
- Agricultural Bank of China.
- China Construction Bank.
- and China Postal Savings Bank.
The Chinese central bank has spoken with the Industrial Bank and Alipay regarding the issue of the hype that has been building around cryptocurrencies this year.
The result of this talk was that the People’s Bank of China (PBOC) claimed that cryptocurrency trading was disrupting the country’s normal financial and economic system, increasing the risks of illegal remittances, money laundering and other illegal activities.
There are no banking services and products for crypto companies in China right now:
Senior representatives of the Chinese central bank also added that cryptocurrencies endanger the financial safety of people in China.
From now on, banks are required to strictly conduct KYC and the opening of accounts for cryptocurrency trading companies is prohibited.
They must also reject business related to cryptocurrencies for trading, clearing and settlement.
This requirement of the People’s Bank of China also applies to other banks in China.
The aforementioned banks and companies agreed not only to follow the incoming directions but also to further investigate cryptocurrency trading firms and crack down on activities that help increase hype around cryptocurrencies in general and cryptocurrency trading in particular.