The Central People’s Bank of China (PBoC) has one statement and announced that it has reached an agreement with all of the country’s largest commercial banks and one of its largest e-payment providers to take stronger crackdown on the crypto industry and its users. (Updated 10:33 UTC: updates throughout text. Updated 10:30 UTC with a statement from the Postal Bank of China.)
In the statement, the PBoC claimed – and urged – with key players like the Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Postal Savings Bank of China, as well as Alibaba-powered e-payment provider Alipay to take action against crypto trading and not offer all forms of crypto-related financial services.
The central bank added that it had also spoken to “other banks and payment providers”. The only major banks and e-payment platforms missing from the list are WeChat Pay (operated by Tencent) and the Bank of China.
Ownership of cryptos has remained legal in China despite a massive raid in September 2017 that banned crypto exchanges and banned initial coin offerings (ICOs). It’s also not the first time Chinese banks have cracked down on crypto users, as similar statements were released back in 2014.
Meanwhile, the announcement appears to have been inadvertently hinted at by the Agricultural Bank of China, which released a statement on a ban before apparently promptly deleting the post. However, since the PBoC’s announcement went live, the Agricultural Bank of China has restored the post.
The latter confirms that the bank will “block” and “block” accounts suspected of crypto-related transactions, with the perpetrators being “reported” to “the relevant authorities”.
And the bank concluded that it would “actively take action against cryptocurrency-related business activities”.
“No institution or individual may use bank accounts, products or services to fund coin spending or conduct cryptocurrency transactions.”
The Postal Bank of China also has Posted a similarly worded warning on its own website with the addition that it would “increase risk monitoring in payment transactions” and “reserve the right” to take countermeasures if it uncovered crypto-related activities, including the “blocking of accounts and account closures”. . ”It also promised to“ report any information to the regulatory authorities ”.
The PBoC, meanwhile, added that its meeting also included financial regulators, and wrote that in the future, banks will be required to “analyze the characteristics of transactions” in order to more effectively identify crypto-related activities.
It urged banks to spend more on “technology investments” to “improve surveillance and identification skills” – and help them identify crypto-related transactions.
The PBoC also alleged that the banks and platforms in question had promised “to refrain from conducting or participating in cryptocurrency-related business activities, to further intensify the inspection” and “to take strict measures to cease payments related to speculative transactions”.
At 10:32 UTC, BTC was trading at $ 32,857, down 3% in one day. ETH fell nearly 5% to $ 1,989.