China has slapped a ban on finance sector businesses, including payment firms, from offering cryptocurrency services.
Fast Facts:
- Companies in the finance sector, including banks and online payment processors, are forbidden from providing any services involving cryptocurrencies, including, trading, clearing and settlement, according to a statement issued by three finance industry associations on Tuesday.
- Citing crypto market volatility and speculation as a danger to the financial system, the three associations said finance businesses must not provide savings, trust or pledging services involving cryptocurrencies, and that they would not be permitted to offer any crypto-related financial products.
- The move is the latest in a series of Chinese clampdowns on the crypto sector, following the shutdown of cryptocurrency exchanges in the country in 2017 and a central bank block on access to foreign crypto exchanges and initial coin offering websites. Last month, China announced closer scrutiny of new forms of illegal fundraising in the name of blockchain and cryptocurrency.