People’s Bank of China (PBOC) Beijing will prohibit payment service providers from facilitating cryptocurrency related transactions

people bank of china cryptocurrency

PBOC bars banks from cryptocurrency trading. According to a circular which was released in China on January 8 19, 2018, banks are not allowed to offer any kind of services which are related to cryptocurrencies. Moreover, the circular also stated that even the payment processors were not allowed to provide platforms for such transactions. Also, the circular clearly stated that regulatory monitoring and supervision needs to be increased in order to detect such transactions. It is necessary for the banks to shut down these channels when such transactions are detected.

People’s Bank of China, the bank which issued the circular is trying to cover up the usage of its banking channels for cryptocurrency trading. The problem is that it is notoriously difficult to detect such channels which are being utilized illegally.

After the circular, the various branches of the banks are more alert. Moreover, more and more banks are conducting a self-audit in order to identify whether their banking channels are being used for crypto currency-based activities are not. With the government cracking down on banks as well as payment processors, it is in their benefit to shutting down the usage of their platforms for cryptocurrency trading.

China is not alone in coming down hard on cryptocurrencies. Even South Korea is planning to ban the cryptocurrency exchanges from operating for its citizens. This has also led to a significant crash in the prize of cryptocurrencies as South Korea and China are 2 of the biggest markets in the world when it comes to cryptocurrency trading. It remains to be seen whether they are completely outlawed or whether they are citizens can actually trade in cryptocurrencies with the help of other exchanges in other countries.

For now, however, these 2 are not the only countries which are taking steps against cryptocurrency trading. Many countries are also warning that citizens to keep away from the same in order to ensure that the usage of cryptocurrencies is not increased significantly. The results, however, are mixed as cryptocurrencies have gained mainstream attention and are increasing in value significantly owing to which, it is garnering the attention of investors as well.

In the longer term, it remains to be seen what would be the result of this crackdown on cryptocurrencies by various countries all over the world. The exchanges offering services to such individuals are plenty. This is still allowing the investors all over the world to invest in cryptocurrencies.

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.


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