China’s Central Bank declared today that Chinese banks and payment organizations must tighten their regulations on cryptocurrency transactions.
The People’s Bank of China has ordered Chinese banks and payment institutions to stop providing a wide range of cryptocurrency services, including account opening, transactions, and settlements.
As part of the country’s broader crackdown on the industry, the Central Bank reportedly examined five banks, including Alipay, and recommended that they refrain from conducting crypto-related operations.
The Agricultural Bank of China, the China Construction Bank, the Postal Savings Bank of China, and the Industrial Bank are among the other banks.
China’s cryptocurrency problems The move by the Central Bank comes amid China’s broader efforts to crack down on the cryptocurrency field, particularly through the mining industry.
Bitcoin fell by 12% in May of this year after a Chinese financial committee included Bitcoin mining in a laundry list of operations that constituted a slew of financial concerns. The Chinese government stated at the time that “it is vital to preserve smooth functioning of the stock, debt, and foreign exchange markets, aggressively crack down on unlawful securities activities, and harshly penalize illegal financial activities.”
That was the first time the State Council specifically condemned Bitcoin mining, and the situation for Chinese miners has not improved since then.
Sichuan, a major mining region for much of the year, outlawed Bitcoin mining this week due to the sector’s high energy consumption, thereby cutting off yet another popular mining province from the market and joining the ranks of Xinjiang and Inner Mongolia.