China Urges Banks to Restrict Crypto Operations

China has been tightening the leash regarding the crypto operations in the region and has urged major financial institutions and banks to impose strict restrictions on crypto trading.

China has been quite blunt in its views regarding crypto and BTC mining and how the country is not in favor of continuing the crypto trade in the nation. The President of China Xi Jinping had expressed his concerns regarding the carbon emission that are generated during the BTC mining and cited the stated reason to justify the impending crackdown

However, in a recent development, China has urged the major banks of the nation to restrict all possible crypto operations in terms of BTC trading, clearing, and settlement of transactions which can be an added blow to the existing crypto operations in the nation.

People’s Bank of China Will Put a Stop in Facilitating Virtual Crypto Trade

PBOC has issued guidelines on how the bank is planning to identify the virtual exchanges of Cryptocurrency taking place and putting a stop to such operations by cutting off the payment links on time to render the transaction null and void. The administration has also issued a notification stating how the banks will not pursue or entertain any trading activities regarding crypto and Bitcoin.

People’s Bank of China held a meeting with leading centralized financial institutions such as Agricultural Bank of China, Commercial Bank of China, Construction Bank of China, Postal Savings Bank of China, Industrial Bank, and Alipay Network Technology to derive this decision of restriction of crypto transactions.

China Cites Risk of Cross Border Money Laundering as a Reason to Restrict Crypto Trade

PBOC has further clarified their move as a restricted measure to prohibit cross-border trade of BTC and other cryptocurrency variants to be used as bait to encourage money laundering and illegal activities in the nation. The bank stated how this crackdown will successfully regulate the financial and economical structure of the country by diffusing illegitimate cross-border transactions.

The order has been a recent addition to the existing crypto crisis in the country where China recently was seen dissolving the complete structure of crypto and BTC mining in Sichuan, which is the world’s highest hydropower BTC mining area( BTC -4.44℅)

China’s stance towards banning cryptocurrency mining is anticipated to stay for long and the country has also issued multiple disclaimers and warnings to miners and BTC investors and has advised them to seek better alternatives.