China bans cryptocurrency from banks, payment systems

Credit: AppleInsider

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.

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32 Comments

EsquireCats

said about 2 years ago

crypto currency prices have skyrocketed and plummeted
As have share prices (both recently and historically) which are usually tied to superannuation, thus having a real impact on livelihoods.
This seems more like identifying cryptocurrencies as a threat to power.

foregoneconclusion

said about 2 years ago

EsquireCats said: This seems more like identifying cryptocurrencies as a threat to power.

I think it's mainly about identifying them as not being currencies. The purpose of currency is to provide a relatively stable value and crypto obviously doesn't do that. Crypto is a form of speculative investment. Allowing speculative investments to start blurring the line with currency is a bad idea all around.

lkrupp

said about 2 years ago

If the world’s second largest economy is banning cryptocurrency then what’s the future of it look like?

DAalseth

said about 2 years ago

lkrupp said:

If the world’s second largest economy is banning cryptocurrency then what’s the future of it look like?

Bad I hope. the sooner this stupidity is put down the better it will be for all economies.

JackyChan

said about 2 years ago

Why would you believe the stated reason from an announcement from the Chinese government? It’s not about the “dangers” to citizens or the economy, and It’s not about whether it’s a real currency. This is merely ground work in preparation for the single biggest socio-political maneuver in the history of China. They are clearing away crypto currencies so that there will be only one currency that will be used everywhere in China—the Digital Yuan. Benefits include the ability for the government to track every purchase from everyone (and continue its push to eliminate the USD as the world’s reserve currency).