China came ahead to ban financial organizations and payment companies from delivering cryptocurrency dealings and warned investors against crypto trading. 

It is China’s latest attempt to hold the vast and flourishing digital trading market. With the help of the ban, institutions such as banks and online payments channels must not offer clients any service involving cryptocurrencies, such as registration, trading, clearing, and settlement, three industry bodies stated in a joint announcement last Tuesday.

In recent times cryptocurrency prices have skyrocketed and also crashed. But, on the other hand, cryptocurrencies have often rebounded, seriously intruding on the safety of people’s possessions and disrupting the regular economic and financial order, was a statement from the authorities. The three central industry bodies are the China Banking Association, China’s Payment and Clearing Association, and China’s National Internet Finance Association. 

 China banned initial coin offering and crypto exchanges, but the twist is an individual can hold cryptocurrencies. However, the institutions are not going to provide trust, saving, or pledge any cryptocurrency services, nor will they sell any financial products even minorly related to cryptocurrency, said the officials. 

No digital tokens

The prices of the main cryptocurrencies started crashing down after the People’s Bank of China put forth a statement saying that digital tokens cannot be used as a form of payment. 

The largest fall was 7.3 percent, up to $40,139 in Asia on the previous Wednesday. It was a continuation in the ongoing slide sparked by Elon Musk, the Tesla founder, due to the comments and companies holding the coin. Dogecoin, Ether, and last week’s news. 

 It is not the foremost time Beijing has moved against digital currency. In 2017, China had shut down local cryptocurrency exchanges, which reportedly covered 90 percent of global Bitcoin trading.  

Beijing also made a movie against digital currency in June 2019. The People’s Bank of China has put out a statement conveying it will block access to all Initial Coin Offering websites, domestic and foreign, also cryptocurrency exchanges. The aim was to bring down all cryptocurrencies following a ban on foreign sales. 

 The statement was very specific in highlighting the risks of cryptocurrency trading, stating crypto is not supported by absolute value, their prices can be manipulated, and Chinese law doesn’t protect trading contracts.