Has China Really Banned Crypto?

Fresh news from China has emerged about the ban on cryptocurrency. The three leading financial bodies have affirmed that companies in the country have been prevented from offering crypto-related services to their clients.

According to the reports, the institutions must remind firms that they should not issue financial products related to crypto-assets and should also not provide saving or pledging services.

This statement was jointly endorsed by the National Internet Finance Association of China and China Banking Association as published by Shanghai Securities News. This was also reported by the state-run news agency, Xinhua.

The statement clearly stated that it will be illegal for both the financial bodies and payment companies to offer their clients all the crypto-related services including settlement, trading, registration, and clearing.

The statement was also aired on state-run media outlet CCTV channels and on the official WeChat page of the central People’s Bank of China (PBoC).

But the majority of media outlets reported that the main purpose of this statement was to “prevent the risk of cryptocurrency trading speculation.” However, Reuters reported that a fresh ban had been put in place.

One crypto expert Qiao Wang stated that the statement only reiterates “an anti-speculation law years ago.”

Commentators reacted angrily and accused Reuters of spreading false information. Many pointed out that this statement did not come from the base of the Central Bank.

The three bodies issued a warning to the investors about the speculative nature of the cryptocurrency that it can disrupt “the existing economic and financial order.” They further added that crypto transactions are not protected by law and investors are solely responsible for any losses. They also reminded me that crypto exchange services with foreign currencies remain illegal in China.

While Chinese are still holding crypto assets and over-the-counter trade has not been stopped yet.