China Bans Banks From Handling Cryptocurrency – The Big Crypto Standoff
In a bold move to curb the wild rise of digital money, China is telling banks, online payment firms, and other financial players that they can no longer touch crypto‑related services. That means no more registration, trading, clearing, or settlement in the crypto world for these institutions.
Why the Shudder?
According to a joint statement from three key industry groups, the cryptocurrency market has become a roller‑coaster of sky‑high spikes and sudden drops. “Speculative trading is on the rebound,” the statement says, “and it seriously endangers people’s wealth and throws the normal economic and financial order into chaos.”
What the Ban Covers
- Stop offering crypto registration and trading services.
- Freeze any clearing and settlement related to digital coins.
- Avoid providing savings, trust, or pledging services with crypto.
- Refrain from issuing any financial products that depend on cryptocurrency.
Even though the ban is pretty strict, individuals are still allowed to own crypto. It’s a bit like saying, “Hey, you can keep your bitcoin at home, but no one—especially banks—can help you trade it.”
A History of Crypto Crackdowns
China’s GOP’s weren’t new to this; back in 2017 it shut down local exchanges that had been handling a whopping 90% of global Bitcoin trading. Then in June 2019 the People’s Bank of China went on to block all domestic and foreign crypto exchanges and Initial Coin Offering (ICO) sites, hammering the market hard.
They warned traders that virtual coins are not backed by real value, are prone to manipulation, and that the contracts are not protected under Chinese law – basically a heads‑up that crypto comes with a big dose of risk.
Who’s Behind the Redirection?
- National Internet Finance Association of China
- China Banking Association
- Payment and Clearing Association of China
These bodies are steering the new policy, ensuring that no financial institution will assist someone in the crypto hot‑seat. It’s a sweeping order to keep the digital market in check while protecting the average citizen’s finances.
