China has ordered banks to step up their anti-crypto campaign

China’s central bank warned state-owned banks and Jack Ma’s Alipay to “investigate and identify” bank accounts that facilitate cryptocurrency trading and blocked all relevant transactions in a recent move against Bitcoin in Beijing.

On Monday, the central bank called on China’s Agriculture Bank, China Construction Bank and ICBC, as well as other payment platforms like Alipay, to discuss the issue of “providing services for speculating cryptocurrency transactions”.

The regulator called on financial groups to identify and block all transfers to accounts held by cryptocurrency exchanges and other maritime intermediaries, as well as to invest in technology-related transactions involving “cryptocurrency speculation”.

The order is part of the Chinese government’s latest crackdown on cryptocurrencies, which began in May, as Beijing seeks to end trade and close major crypto-mining operations within its borders. Instead, the central bank wants citizens to use its digital currency, which has begun to be tested on large-scale pilots.

Chinese authorities have taken the first steps to ban banks from handling Bitcoin transactions since 2013 and since launching several crackdowns, they have been unable to completely eliminate cryptocurrency trading. Industry insiders said the Chinese are still able to get Bitcoin through peer-to-peer traders.

Leo Weese, founder of the Hong Kong Bitcoin Association, said the implementation of the directive could allow authorities and banks to slowly start tracking and cutting bank accounts used by peer merchants to accept payment.

“Bitcoin trading will continue in China, but it will become less liquid and expansions will increase,” Wees said. “People will be limited to negotiating with their friends and trusted friends.”

The People’s Bank of China has said it disrupts the financial system of cryptocurrency trading, poses an illegal risk of cross-border asset transfers and money laundering, and “seriously violates the security of people’s financial assets.”

Within the strict capital control regime, China has severely limited the ability of citizens to transfer money from the country and Bitcoin has been closely watched by the cryptocurrency since it became famous almost a decade ago.

Beginning last month, China stepped up efforts to dismantle high-strength Bitcoin mining in the country, which accounted for about 75% of the world’s mining activities, according to preliminary estimates.

Sichuan, in southwest China, was a province with hydro-rich energy last province to order the abandonment of one of its 26 largest mines last week. He continued to ban local governments at major mining locations in Xinjiang, Yunnan and Qinghai.

It is also a region of northern Inner Mongolia set the phone residents to whistle at neighbors who suspect the cryptocurrency is mining.