The People Bank of China (PBOC) said the country’s major financial institutions stop facilitating virtual currency transactions. Protect people from increasing the negative sentiment in the crypto market.
In a statement, PBOC said that banks must not provide or services such as trading, clearing, and settlement for crypto transactions.
The People Bank of China (PBOC) anti-crypto bias is not new the latest statement comes after consultation with multiple banks. They included the Industrial and commercial bank of China, Agricultural Bank of China, Construction bank, Postal saving bank, and Alipay Network Technology.
The central bank pointed out virtual currency trading activities disorder and risk of the illegal cross border of asset, money laundering, and other criminal activities.
Financial institutions and banks have agreed to take necessary steps in line with the PBOC’s guidelines, it said.
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They also have to identify virtual currency exchange and over-the-counter dealers, capital accounts, and cutoff payment links for transaction funds on time.
The postal saving banks is the first to officially publish similar notice where it says it will take measure to prohibit digital currency transaction.
