China Tells Bank Not To Support Cryptocurrency


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China has expanded its limitations on crypto support and restricted the banks and payment platforms not to support cryptocurrency and stop the transactions in digital currency. 

That comes after an order was issued on Friday to shut down Bitcoin mining operation in Sichuan province. 

Abrupt slumped in Bitcoin price by more than 10% on Monday and fell again on Tuesday, dropping below $30,000. 

Since hitting a record high above $30,000 in April, the value of cryptocurrency fell about 50%. China’s central bank, the people of China (PBOC) said on Monday that several banks and payment companies are instructed to take tougher action over the trading of cryptocurrencies. 

China tells bank and payment platforms to stop providing products or services with Bitcoin transactions such as trading, clearing, and settlement for bitcoin transactions the PBOC said in a statement. 

China’s third-largest lender said that they were following the PBOC guidance and would conduct due diligence on clients to root out illegal activities involving bitcoin mining and transactions. 

China’s postal saving bank also proclaim not to support cryptocurrency transactions further. 

Financial technology giant Ant Group which is the owner of China’s mobile company and online payment platforms Alipay announced that it would set up a monitoring system to detect illegal cryptocurrency transactions.

The latest measures followed when the authorities ordered to shut down the Bitcoin mining operations in the southwest province of Sichuan on Friday.

Last year, 65% of the global Bitcoin production was considered by China government, with Sichuan rating as its second-largest producer, according to research by the University of Cambridge.

Last month China’s cabinet, the state council said that it would take steps to control financial risk and would crack down on cryptocurrency mining and trading as a part of the campaign. 

Some analysts have predicted the further abrupt slump in the price of Bitcoin due to a price chart phenomenon known as a “death cross”, which results in the short-term average trendline crosses below a long-term average trendline.

“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,” they said in the statement.

Besides, the auction house Sotheby’s proclaimed the sale of a rare pear-shaped diamond which is expected to sell for as much as $15m can be bought at an auction using next month with cryptocurrencies. 

The sale of such a large diamond has been offered for the first time in a public sale with cryptocurrency. 

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James Robert is a journalist who covers all the social media and tech-related news for SG-educate, the world's largest multimedia news agency. He reports on tech from all over the world, focusing mostly on social media platforms. He has worked as a digital editor and online coverage of global breaking news on tech and big stories, reaching millions of readers across multiple platforms.

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