The ‘China crypto FUD’ is back again, but it’s misleading


Three industry bodies under the Central bank of China released a document today calling for a ban on financial institutions and online payments channels providing any services involving cryptocurrency, including but not limited to registration, trading, clearing, and settlement. 

Additionally, the institutions would not be allowed to offer to save, trust or pledging services, nor issue any financial products related to cryptocurrency.

No crypto

In their joint statement, the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China are also warning investors against speculative crypto trading, highlighting that cryptocurrencies “are not supported by real value”.

Despite blocking crypto exchanges and initial coin offerings, China has not prohibited individuals from holding cryptocurrencies.

“Chinese admit that they are researching and learning, but they will adhere to the current policy before reaching a conclusion, that is, to recognize the legal status of Bitcoin, allow individuals to participate, but not allow Chinese companies and institutions to be involved”, tweeted Chinese journalist Colin Wu.

Three associations under the Central Bank of China issued a document requiring institutions not to conduct virtual currency business, calling on the public not to participate in virtual currency, and emphasizing that virtual currency transactions are not protected by law,” he added.

Document not government issued?

The statement also emphasizes that individual investors should “correctly understand the essential attributes of virtual currency and related business activities,” pointing out that their prices are easily manipulated and trading contracts are not protected by Chinese law.

The altcoin market in China witnessed a recent surge in interest, drawing the attention of the China Internet Finance Association. However, the fact that the document was issued by the association and not the Chinese authorities, shows that it has not yet reached a higher level of government scrutiny, according to Wu Blockchain.

The newest restrictions fall in line with the country’s plans to launch its own digital currency, the Digital Currency, Electronic Payment (DCEP).

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.





Source link

Latest articles

Pantera boss: Upcoming Ethereum catalyst could cause ETH to outperform Bitcoin

Dan Morehead, the Chief executive officer of Pantera Capital, an American hedge fund that focuses on crypto investments, has said that Ethereum could...

Spain considers allowing mortgage payments in crypto

According to 20 Minutos, a Spanish newspaper group, lawmakers in the country are considering a proposal enabling mortgage payments with crypto.The Digital Transformation...

Ethereum one-upped Bitcoin to close 13 consecutive daily green candles. Here’s what it means

Ethereum one-upped Bitcoin to close 13 consecutive daily green candles. Here's what it means Earn up to 12% APY on Bitcoin, Ethereum,...

Gary Gensler sounds alarm on growing DeFi activity, says SEC looking to regulate crypto sector

US Securities and Exchange Commission chairman Gary Gensler reiterated his position on the burgeoning decentralized finance (DeFi) sector yesterday, calling for an increased...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here