A Chinese journalist Colin Wu who covers everything around crypto and blockchain industries in China has just reported that, according to a recent order from three leading Chinese associations, financial institutions are forbidden to use digital currencies in their businesses—for pricing, trading. However, individuals are not barred from holding cryptocurrencies.
According to Colin Wu, due to the recent popularity of altcoins, more new investors have appeared in China, which drove the attention of regulators. But this warning was issued by the association, showing that it has not yet reached a higher level of attention from the Chinese authorities.
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In his tweet, Colin Wu has reported that three major Chinese associations – the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China have strongly advised financial institutions not to use cryptocurrencies in their business operations.
The article cited by Colin Wu reads that Financial, payments, and other types of institutions have been given a strong warning not to conduct any business activities related to cryptocurrencies (Bitcoin, Ethereum, etc.): trading speculation, pricing goods, and services in crypto, issuance of securities, token sales, and so on.
The document also reminds the audience that digital currencies are not protected by law and, should a user face a financial loss associated with crypto assets, the responsibility will be solely theirs.
China had earlier banned token issuance and crypto trading in 2017, forcing major exchanges to move their operations out of the country. This action has been followed by a host of often conflicting statements on crypto, with the government seeming to favor the “blockchain, not Bitcoin” narrative.
A twitter handle that goes by the name Crypto India made fun of this that truly reflect China’s love and hate relationship with crypto –
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