China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions and has warned investors against monopolizing transactions with digital currencies.
For its part, the value of Bitcoin fell 6% to about 900 42,900, two and a half hours after the move was announced, according to CoinGecko data. However, later digital currency accumulated.
Under the ban, companies from Asian companies such as banks and online payment channels will not be able to provide their customers with any services related to cryptocurrencies such as registration, negotiation, settlement and settlement, the three systems of the sector were collectively described this Tuesday. The report, Reuters takes.
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“Recently, cryptocurrency prices have risen and fallen, and speculative cryptocurrency trading has resurfaced, seriously violating the security of people’s assets and disrupting normal economic and financial order,” they stressed.
According to the National Internet Finance Association, the Banking Association and the China Payment and Settlement Association, companies should not provide digital currency savings, trust or pledge services, or publish financial products related to digital currencies.
Although China has banned cryptocurrency transactions and initial currency issuance, it does not restrict individuals from holding them.
The agencies also cited the risks of trading digital currencies, saying digital currencies are “not supported by real value”, their prices are easily manipulated and trade agreements are not protected by Chinese law.
