People’s Bank of China Issues New Anti-Crypto Directive to Banks

The People’s Bank of China has just issued a notice to several financial institutions regarding the facilitation of cryptocurrency transactions.

The apex bank noted that it discussed the cryptocurrency issue with financial institutions like the Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank, Industrial Bank, and the Alipay (China) Network.

The PBoC argued that “virtual currency trading activities disrupt the normal economic and financial order, breed the risks of illegal cross-border transfer of assets, money laundering and other illegal and criminal activities, and seriously infringe the people’s property safety.”

The notice issued by the PBoC also detailed that payment institutions and banks across China must execute strict guidelines on “Bitcoin risks,” “token issuance financing risks,” and other recommended regulatory requirements.

The central bank added that:

“Financial institutions must not provide account opening, registration, and registration for related activities.”

Shortly after the notice got passed around, China’s Postal Savings Bank released a statement adhering to the new order, noting that:

“According to relevant regulations of the People’s Bank of China, no institution or individual may use our bank’s accounts, products, services, and channels to conduct token issuance financing and ‘virtual currency’ transactions.”

The Postal Savings Bank also encouraged customers to report any crypto activities they observed.

People’s Bank of China Announcement Triggers Crash in Bitcoin

The latest PBoC undertaking closely follows the June 20 mandate from Sichuan officials banning BTC mining activities in the region.

Since BTC mining got banned in five of the largest provinces in China, Bitcoin’s hashrate has dipped to 100 EH/s.

Renowned Chinese cryptocurrency journalist Colin ‘Wu’ Blockchain commented on the latest development, tweeting about the notice on Monday and noting that two other financial institutions have released statements relating to the subject at hand. Colin said that:

“The Agricultural Bank of China once again released the deleted webpage, and Alipay also issued a related statement.”

BTC price suffered an immediate crash following the PBoC announcement on Monday. The benchmark cryptocurrency fell to a new twelve-day low at $31,700 earlier today but has since rebounded to the mid-$32,000 area.

 

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