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China central bank has ordered five banks and several payment firms, including Alipay, not to deal with any crypto-related companies, including exchanges.
According to Bloomberg journalist Walter and Chinese crypto journalist Colin Wu, the People’s Bank of China has been in talks with several of the country major banks and payment firms to stop providing services to digital currency businesses.
CHINA CENTRAL BANK SAYS BANKS AND PAYMENT FIRMS MUST NOT PROVIDE SERVICES INCLUDING OPENING ACCOUNTS, REGISTRATION, TRANSACTION, CLEARING AND SETTLEMENT FOR CRYPTOCURRENCY RELATED SPECULATIONS
— *Walter Bloomberg (@DeItaone) June 21, 2021
An article published by the Central Bank of China (PBOC) says that the China State Bank has spoken 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, and Alipay on the hype that has been building around cryptocurrencies this year.
Read: Why Crypto Market Lost $120B In A Day And $270 Billion In 1 Week
The central of China issued a statement stating that it had interviewed 5 banks and Alipay, requesting not to participate in virtual currency-related business activities. https://t.co/fI4Ga82dkW https://t.co/xrSvigxTA4 pic.twitter.com/RFnZ3jlobZ
— Wu Blockchain (@WuBlockchain) June 21, 2021
The talk summary is that PBOC thinks that trading in cryptocurrencies violates the financial and economic order of the country, increases the risks of illegal transfers of funds, money laundering and other illegal activities.
Top officials from the central bank also added that cryptocurrencies endanger the safety of people in China. From now on, banks must strictly follow KYC procedures and are prohibited from opening accounts for crypto trading firms. They must also abandon operations with all the crypto-related business.
This PBOC requirement applies to all banks in China.
The aforementioned banks and companies have agreed not only to follow the instructions received, but also to intensify investigations of crypto trading companies and to suppress activities that help increase hype around virtual currencies in general and crypto trading in particular.