China Once Again 'Crosses' the Crypto Sector - - Financial Market Media No. 1 in the World China Once Again 'Crosses' the Crypto Sector China Once Again 'Crosses' the Crypto Sector

May 19, 2021

China Once Again 'Crosses' the Crypto Sector

 Most recently, all financial institutions and payment companies in China have been blocked from providing any services related to cryptocurrencies.

Beijing has warned investors not to make crypto investments based on speculative.

This means that institutions, banks, and online payment channels are no longer allowed to offer any type of virtual asset services including cryptocurrency registration, investment and settlement.

According to three organizations: National Internet Finance Association of China, China Banking Association, and Payment and Clearing Association of China, volatile cryptocurrency price movements, accompanied by increased speculative investment, have actually violated the security of public assets and disrupted financial industry norms and economics.

So far, China has restricted cryptocurrency exchange platforms and initial coin offerings (ICOs), not to mention restricting individual cryptocurrency ownership.

For the record, the country started ‘pushing’ cryptocurrencies starting 2017. At that time China acted to shut down several local cryptocurrency exchanges and managed to eliminate the speculative market that accounts for 90% of Bitcoin (BTC) investments globally.

In 2019, the People’s Bank of China blocked any access to foreign and domestic crypto exchanges, including some Initial Coin Offering websites.

China concluded their actions were justified because the virtual currency was not backed by ‘real value’ due to its easily manipulated prices and investment contracts not being protected by Chinese law.