Cryptocurrency Traders May Face China Bank Ban

News, Regulation | January 22, 2018 By:

The People’s Bank of China (PBoC), the country’s central bank, has reportedly ordered financial institutions to stop providing banking or funding to any activity related to cryptocurrencies.

According to a document issued by the PBoC, banks must carry out internal investigations to ascertain if cryptocurrency trading activities are being conducted via their payment services. The document stated that service for cryptocurrency trading is strictly prohibited. Effective measures should be adopted to prevent payment channels from being used for cryptocurrency settlement.

“Banks should enhance their daily transaction monitoring, and the timely shut down of the payment channel once they discover any suspected trading of cryptocurrencies,” the document said. “The deadline for disclosing the measures is on January 20.”

The document was reportedly distributed as an internal document among banks, and not published on the PBoC website. Local media publication reported that an unnamed staff member at the PBoC has confirmed the legitimacy of the document.

Last week, PBoC vice governor Pan Gongsheng said that the government would apply more strict regulation to end all cryptocurrency trading-related activities and services. The government plans to block domestic access to Chinese and international cryptocurrency platforms that allow centralized trading. The government will also target individuals and firms that provide market-making, settlement, and clearing services.