Chinese banks to halt cryptocurrency transactions to implement government anti-crypto measures

China’s central bank has once again reiterated its stance on cryptocurrencies, telling major financial institutions to stop facilitating digital asset transactions. 

China begins its toughest crackdown on crypto

China’s largest banks agreed to halt the support for customers who wish to trade Bitcoin and other cryptocurrencies after the central bank stepped up to enforce a government ban.

The People’s Bank of China (PBOC) stated that banks must not provide services and products, including trading, clearing and settlement for digital asset-related transactions.

The country’s large financial institutions were told to identify cryptocurrency exchanges’ and over-the-counter dealers’ capital accounts and cut off the payment link for transaction funds as soon as possible.

The world’s third-largest bank by assets, the Agricultural Bank of China, has put out a statement indicating that it is set to implement the Chinese government’s anti-cryptocurrency measures. 

The bank’s announcement follows a recent meeting with the PBOC, which discussed major domestic banks and mobile payment service providers and ordered institutions to ensure that banking and settlement services were denied to clients engaged in digital asset transactions. 

The Agricultural Bank of China added that it would immediately shut down accounts and suspend ties with any customers found to be involved in cryptocurrency trading. The bank originally posted an announcement on June 21, explaining that the bank’s services must not be used for digital asset-related transactions. 

Within an hour of the publication, Bitcoin reacted heavily by dropping $1,000 before slightly rebounding. However, the bank deleted the statement shortly after its publication. Citing a former Chinese bank official, Chinese journalist Colin Wu stated that the central bank was waiting to issue relevant documents on the same day between multiple large financial institutions.

Wu added that the official revealed that the new policies issued by the central bank would not be too strict but may be a part of many future possible crackdowns on cryptocurrencies in the coming future. 

Not only did major cryptocurrencies plummet on China’s three major exchanges, but the price of USDT/RMB also fell to 6.22 at the lowest. 

Chinese financial news outlet Caixin further stated that authorities in the country have also decided to move toward a “carbon-neutral green transformation,” and they no longer care about the “Bitcoin pricing power.” 

This news comes shortly after China has yet again ceased Bitcoin mining operations in another province in the country, Sichuan. Miners are now scrambling amid the new crisis, as a Chinese logistics firm in Guangzhou has confirmed that it is airlifting 3,000 kilograms of BTC mining machines to Maryland, USA.