China Tells Banks to Halt Their Bitcoin-Related Services

As Bitcoin continues to plunge to a record low for the first time in three months, the government in Beijing has asked the local banks and financial institutions to halt their BTC-related services, including trading and registration, Reuters reported.

The country’s National banking and Internet association announced the ban, which applies to other digital assets in a joint statement, citing its highly volatile nature. The statement further added, 

Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.

Besides that, the joint statement from the Chinese associations said that fiat currencies do not support these virtual currencies, their values can be easily manipulated through speculation, and that the country’s financial laws do not protect these.

Although the ban has not completely made the trading of cryptocurrencies illegal, it bars the country’s financial institution from providing crypto-related services, including saving and pledging services.

Earlier this year, Turkey and Nigeria also cracked down on digital assets. Meanwhile, the American SEC continues to hold its decision on the ETF applications. Plus, it is fighting a legal battle with Ripple and its top officials over allegations of breaking the country’s security laws.

Despite the regulation, Nigeria saw a different outcome, with a more than 27 percent increase in the P2P transactions and trades. On the other hand, following the closure of Turkey’s two crypto exchanges, the nation’s central bank is now planning to play its role as a regulator of digital exchanges.

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