According to Reuters information, financial institutions will not be able to register, trade, clear or settle with digital currencies.
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May
18, 2021
2 min read
According to information from the Reuters news agency, China prohibited its financial institutions and payment companies from providing cryptocurrency-related services. That is, banks and online payment channels will not be able to provide services that involve registration, negotiation, clearing and settlement of digital currencies.
Apparently this decision of the authorities is due to the fact that speculative trade, the ups and downs in the prices of digital currencies, infringe the security and property of the people and thus disrupted the normal financial economic order.
The news agency highlights that the Asian country banned cryptocurrency exchanges but not that people own them. Also, the authorities explained the risks of this type of trade saying that “virtual currencies are not backed by real value” and commercial contracts are not protected by Chinese law.
Is the ban new?
The Cryptonews portal explains that this is a reminder made in a joint statement between the China National Internet Finance Association, the China Banking Association and the China Payments and Clearing Association that was published by Shanghai Securities News and the state news agency. Xinhua .
Likewise, the media comments that some of the observers and enthusiasts of digital currencies in the eastern country affirm that it is not a new prohibition and only a law against speculation that has existed for a few years is reiterated.