China banned financial institutions from providing services related to cryptocurrency transactions, and has warned investors against speculating in cryptocurrency.
Official Industry bodies said on Tuesday that under the new ban banks and online payment channels should not provide customers with any service that involves cryptocurrencies, such as registration, trading, clearing and settlement.
They said: "Recently, cryptocurrency prices have risen and dropped significantl , and speculative trade in cryptocurrencies has boomed, which is a serious violation of the integrity of people's property and disrupts the normal economic and financial system."
The statement also said that institutions should not provide savings, trust or pledge services in cryptocurrency, or issue a financial product related to cryptocurrency.
China has banned cryptocurrency exchanges and initial coin offerings but has not prevented inpiduals from holding cryptocurrencies.
The statement also highlighted the risks of trading cryptocurrencies, saying that virtual currencies "are not supported by real value," their prices can be easily manipulated, and trading contracts are not protected under Chinese law.
Follow the latest news on Google News
