Financial institutions, such as banks or Internet payment portals, will no longer be able to offer their clients, for example, cryptocurrency trading, clearing and settlement. This was stated in a joint statement by three industry associations, namely the National Internet Finance Association, the Chinese Banking Association and the Chinese Payment and Clearing Association.
“Recently, cryptocurrency prices have skyrocketed and plummeted. It has revived speculative trade in them, which seriously endangers the security of people’s property and disrupts the normal economic and financial order, “the statement added.
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China has previously banned cryptobourses and primary virtual currency (ICO) offerings. However, individuals can hold cryptocurrencies.
India’s central bank also unofficially called on financial institutions and other lenders last week to sever ties with cryptocurrency exchanges and traders. India is now working on a law banning cryptocurrencies in the Asian country and fining anyone who trades in cryptocurrencies. It would mean the toughest such intervention in the world so far.
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In April, the Turkish central bank decided to ban cryptocurrencies on payments because, in its opinion, they are accompanied by high risk.
The most famous cryptocurrency bitcoin weakened significantly on Monday and reached the level of 42 thousand dollars, the lowest in three months. The impetus for the slump was the reaction of Tesla boss Elon Muska, who clearly did not refute speculation on Twitter that Tesla was going to sell his remaining bitcoins, or that she might have already sold them.
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