China has been an active player in the crypto game. The country seemed more enthusiastic about crypto assets that involved mining and trading of the cryptocurrency. Of course, President Xi Jinping’s regulators have pulled away the market’s sudden growth.
After the recent ban on mining and trading, the country is going around the fintech and retail world. As if the crypto holders might go on an impression that this shift could actually do something with their wealth.
The People’s Bank of China is going to roll out its own digital currency. In the meantime, it is ordering the Ant Group and four giant state-owned banks to crack down on transacting in privately created digital assets. The PBOC also said that the country’s major financial institutions to stop facilitating virtual currency transactions that increase the negative sentiment in crypto markets. The People’s Bank of China said it summoned the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China (AgBank), the China Construction Bank, the Postal Savings Bank of China, the Industrial Bank and payment company Alipay, urging them to block speculative trading as the government cracks down harder on cryptocurrency.
“Customers are asked to be more aware of risks, safeguard bank accounts, and not to use virtual currency-related transactions,” China Construction Bank Ltd. said on its website.
However, the cryptocurrency promoters say that the anonymity and flexibility of cryptos are a blessing. Meanwhile, the Chinese regulators warn that might aid money laundering or other crimes. Bank executives were asked to maintain financial stability and security, said the central bank in a statement. It said cryptocurrency trading disrupts regular economic and financial order and can facilitate money laundering and other crime. The regulators tightened prohibitions against handling cryptocurrencies in 2017 and reminded banks about the risks of having cryptos. In fact, regulators in several Chinese regions ordered cryptocurrency mining operations to shut down after identifying the risk for illegal cross-border transactions through them.
The Chinese central bank is currently developing an electronic version of the country’s yuan that is traceable and controlled by Beijing.