China to Ban Cryptos Through Financial Institutions
The People’s Bank of China declared that China’s financial institutions and banks will now have to impose a ban on cryptocurrency trading and services. The Central Bank is urging the financial giants of China like Alipay and China Construction Bank to enact strict regulations for the complete ban of Bitcoin and other cryptocurrencies. Ever since the State Council’s announcement of a crackdown on cryptocurrency mining and trading, the Central Bank of China has started conducting meetings for imposing the ban on Bitcoin across the country.
In an interview, a spokesman of the Central Bank said that speculative trading in volatile assets like Bitcoin and other cryptocurrencies leads to the country’s economic turmoil. Apart from drowning China in the financial crisis, Bitcoin trading has also triggered a rise in financial crimes like money laundering and illegal transfer of assets. For the implementation of the cryptocurrency ban, the PBOC is thoroughly checking every account of the client to identify the accounts that were involved in crypto transactions to eliminate the payment channels of these accounts. The Central Bank is also urging the banks of China to implement technology for the accurate identification of cryptocurrency transactions. AgBank has decided to conduct due diligence of every client to root out every possibility of crypto-related activities and cancel the suspicious accounts. Alipay is setting up a regulatory monitoring framework to detect cryptocurrency websites and accounts linked with the bank.
Upon receiving the notification of ban from the Central Bank, the country’s top financial institutions like Industrial and Commercial Bank of China, Postal Savings Bank of China, Agricultural Bank of China, and more have decided to follow suit by implementing measures to check Bitcoin trading and mining. With the nationwide crackdown on Bitcoin in China, the price of Bitcoin plummeted by almost 10% on Monday, and investors across the globe suffered heavy losses.