China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions and warned investors against speculative crypto trading.
According to the ban, customers of such institutions, including banks and online payment channels, do not accept any cryptocurrency, such as registration, trade, exchange and settlement, according to the Chinese Banking Association, the National Internet Finance Association and the Payment and Clearing Association, in a joint statement Tuesday. It was stated that they should not provide a service.
“Recently, speculative trading in cryptocurrency has rebounded by severely violating the security of people’s properties, disrupting the normal economic and financial order,” they said in the statement.
China has banned crypto exchanges, but it has not prevented individuals from holding cryptocurrencies.
The statement also drew attention to the risks of cryptocurrency trading, “not backed by real value, and its prices can be easily manipulated.”
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NEW REGULATION TO CRYPTO MONEY MARKET