Chinese officials are going hard on cryptocurrency. In its latest bout of crypto regulation, financial institutions have been banned from using digital assets in their businesses, either for trading or pricing.
A Chinese journalist named Colin Wu made the disclosure. According to him, the new restriction follows a recent increase in the number of altcoin investors emerging in China. Wu asserts that three major Chinese associations linked to the Central Bank of China (PBOC) have asked financial institutions to discontinue the use of cryptocurrencies in their business operations. The said recommendation comes from the National Internet Finance Association of China (NIFA), the China Banking Association (CBA) and the China Payment and Settlement Association.
Breaking: Three associations under the Central Bank of China issued a document requiring institutions not to conduct virtualcurrency business, calling on the public not to participate in virtualcurrency, and emphasizing that virtualcurrency transactions are not protected by law.— Wu Blockchain (@WuBlockchain) May 18, 2021
In the article cited by Wu, citizens are reminded that virtual currencies are not real since they are not issued by any financial authority. Consequently, cryptocurrencies must not be used in the market as an acceptable means of payment.
The article goes further to remind its audience that cryptocurrencies are not protected by law. Should a user face any financial loss associated with their use, they will have to bear the brunt of their actions.
China has been actively working on its state-backed digital Yuan. Therefore, it does not come as a surprise that the nation may move to crush other public cryptocurrencies.