China has banned financial institutions and payment companies from offering their clients any service involving cryptocurrency, such as registration, trading, clearing, and settlement, Reuters reported, citing a joint statement by three industry bodies.
Also, the institutions must not provide saving, trust, or pledging services of cryptocurrency, nor issue financial product related to cryptocurrency, the statement by the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China added.
Per the report, the industry bodies have also warned that “speculative” crypto trading and is “seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
Previously, China has banned crypto exchanges and initial coin offerings but has not barred individuals from holding cryptoassets.
Bitcoin (BTC), ethereum (ETH), and multiple altcoins corrected following the news. BTC dropped from above USD 45,500 to below USD 43,000 before rebounding. ETH dived from almost USD 3,550 to USD 3,291.