- Three Chinese Central Bank associates released a document on Tuesday prohibiting financial institutions and payment companies from offering any form of services involving cryptocurrencies.
- The document also warned citizens from involving in any form of virtual currency trade as it is not protected under the law.
Three associates of the People’s Bank of China (PBOC), the Chinese central bank has issued a document prohibiting institutions and businesses from engaging in any form of virtual currency transactions. The latest set of regulatory paperwork ban payment service providers and financial institutions from offering any form of service involving cryptocurrency transactions. The three associate bodies that issued the document include the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China.
The official document read,“Recently, crypto currency prices have skyrocketed and plummeted, 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 issued document highlighted that virtual currency trading is banned in the country and is not protected by law. The warning comes at a time of the growing popularity of altcoins in the country and rising investment interest.
Even though cryptocurrency trading in Fiat was banned several years ago in the country, there was no law prohibiting crypto-to-crypto trading and during the bull season, it has peaked to new highs, thus attracting the attention of the authorities.