Cryptocurrency News

Chinese Banks To Offer Limited Support For Crypto Transactions – Market Drops.

The PBOC [People’s Bank of China] earlier today on Monday told the country’s leading financial institutions to prevent facilitating digital currency transactions, increasing the negative sentiment in the crypto ecosystem.

Banks must not offer products or services like trading, clearing, and settlement for crypto transactions, the PBOC added within an official statement.

They even have to form bound to identify digital-currency exchanges’ and OTC [Over-the-Counter] dealers’ capital accounts, and stop the payment link for transaction funds in a timely manner, it added.

Cryptocurrencies fell, with bitcoin trading near $32k and Ethereum [ETH] dropping below $2k for the primary time since 23rd May.

While the PBOC’s anti-crypto bias isn’t new, the newest statement comes after consultation with the Industrial and Commercial bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank, Postal Savings Bank along with Alipay [China] Network Technology on the issue.

The central bank also revealed that the hype surrounding digital-currency transactions, and identified them as a risk for illicit cross-border transactions and money laundering and a challenge to economic and financial order.

Financial institutions and banks have agreed to adopt required steps in line with the PBOC’s guidelines, it outlined.

The Postal Savings Bank issued a press release, adding that it’ll take steps to ban digital currency-related business activities.

As per journalist Colin Wu, payments platform, Alipay, as well as the Agricultural Bank of China, also issued similar statements.

The PBOC’s diktat comes after the government’s crackdown on cryptocurrency mining activities within the Sichuan province, the world’s leading hydro-powered Bitcoin [BTC] mining space.

China rocked the cryptocurrency markets last month, reiterating the long-held ban on crypto trading and mining.

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