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China bans companies from providing services to crypto transactions Business and Economic News

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Recent attempts to tackle China’s latest digital commerce market have lowered crypto prices.

China has banned financial institutions and payment companies from offering services related to cryptocurrency transactions and has warned investors against speculative cryptocurrency trading.

It was China’s last attempt to deal with the booming digital commerce market. Under the ban, these entities, including banks and online payment channels, are not required to offer customers cryptocurrency services such as registration, trade, clearing and settlement, the three industry organizations said in a joint statement on Tuesday.

“Recently, cryptocurrency prices have gone up and down, and speculative cryptocurrency trading has bounced back, seriously violating the security of people’s assets and disrupting the normal economic and financial order,” the statement said. The three industry organizations are the China National Internet Finance Association, the China Banking Association, and the China Payments and Payments Association.

China has banned crypto exchanges and initial coin offerings, but has not banned individuals from holding cryptocurrencies.

Institutions should not provide cryptocurrency savings, trust or commitment services, nor should they provide financial products related to cryptocurrency, the statement said.

There are no digital tokens

Bitcoin and other major cryptocurrencies collapsed when the People’s Bank of China issued a statement confirming that digital tokens cannot be used as a form of payment.

The biggest token fell to 7.3 percent on Wednesday from $ 40,139 in Asia, and Tesla founder Elon Musk followed a week-long slide generated by comments on the coin’s interventions. Ether, Dogecoin and last week’s sensation, Internet Computer, also went back.

The moves were not the first moves against Beijing’s digital currency. In 2017, China shut down its cryptocurrency exchanges, drowning the speculative market that accounted for 90% of global Bitcoin trading.

In June 2019, the People’s Bank of China released a statement saying it would block access to all domestic and foreign cryptocurrency exchanges and Initial Coin Offering websites, with the goal of reducing all cryptocurrency trading with a ban on foreign exchange.

The statement also highlighted the risks of cryptocurrency trading, saying that virtual currencies “do not support real value”, that their prices are easily manipulated and that trade contracts are not protected by Chinese law.



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