Chinese companies banned from investing in cryptocurrency business

19.05.2021 | auglovoi

Three divisions of the People’s Bank of China: the Banking Association, the Internet Finance Association and the Payment Clearing Association issued a joint [statement] (https://twitter.com/WuBlockchain/status/1394627669266886659?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1394627669266886659%7Ctwgr%5E%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fforklog.com%2Fsmi-kitaj-zapretil-podderzhivat-svyazannyj-s-kriptovalyutoj-biznes%2F). It prohibits Chinese companies from investing in cryptocurrency-related businesses, and recommends that ordinary citizens refrain from investing in unsecured digital assets.

According to the regulator’s offices, digital currency is a special kind of virtual commodity, unrelated to monetary regulation. It is also reminded that cryptocurrency does not have the properties of conventional money and cannot be recognized as real currency, and, therefore, it is prohibited to use it as a means of payment or exchange.

This statement aims to reduce the speculative risks associated with unsecured digital assets. The People’s Bank requires companies to stop any activities related to the cryptocurrency sphere, as well as to stop business contacts with industry players. Special sanctions will be imposed on violators of this ruling.

A number of companies have already begun to take certain measures in fulfillment of this order. For example, China CITIC Bank has already banned its clients, individuals and businesses, from using accounts to buy and sell unsecured digital assets.