China bans cryptocurrency from banks, payment systems

article thumbnail

The Chinese government has banned financial institutions from conducting any business involving cryptocurrency, and warned against trading.

Cryptocurrencies, such as Bitcoin as briefly accepted by Tesla, are now banned from for Chinese financial businesses, though not for individuals.

According to Reuters, the announcement was made jointly by three financial industry bodies. The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China, said the decision was made because of the risks in cryptocurrency trading.

"Recently, crypto currency prices have skyrocketed and plummeted," said the three in a statement seen by Reuters, "and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people's property and disrupting the normal economic and financial order."

The ban means banks and online payment companies cannot offer any services that involve cryptocurrencies. That includes registration, trading, clearing, and settlement. Crypto exchanges and initial coin offerings are also banned.

However, individuals are not banned from holding cryptocurrencies.

Stay on top of all Apple news right from your HomePod. Say, "Hey, Siri, play AppleInsider," and you'll get latest AppleInsider Podcast. Or ask your HomePod mini for "AppleInsider Daily" instead and you'll hear a fast update direct from our news team. And, if you're interested in Apple-centric home automation, say "Hey, Siri, play HomeKit Insider," and you'll be listening to our newest specialized podcast in moments.