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PBOC Says Banks Must Block Crypto Transactions

21 Jun, 20211 min readOther
PBOC Says Banks Must Block Crypto Transactions

The People’s Bank of China (PBOC) on Monday told the country’s major financial institutions to stop facilitating virtual-currency transactions.

  • Banks must not provide products or services such as trading, clearing and settlement for crypto transactions, the PBOC said in a statement.
  • The also have to make sure to identify virtual-currency exchanges' and over-the-counter dealers' capital accounts, and cut off the payment link for transaction funds in a timely manner, it said.
  • PBOC held talks with the Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank, Industrial Bank and Alipay (China) Network Technology on the issue.
  • The central bank noted the hype surrounding virtual-currency transactions, and identified them as a risk for illegal cross-border transactions and money laundering and a challenge to economic and financial order.
  • Financial institutions and banks have agreed to take necessary steps per the PBOC's guidelines, it said.
  • The diktat comes after the government's crackdown on crypto mining activities in the Sichuan province, the world's largest hydro-powered bitcoin mining area.
  • China rocked the crypto markets last month, reiterating the long-held ban on cryptocurrency trading and mining.
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