China’s central bank says all institutions cannot provide virtual currency-related services
The People’s Bank of China (PBOC), the central bank of China, has issued a notice regarding risk prevention in cryptocurrency trading.
1. Financial institutions and non-bank payment institutions cannot provide virtual currency-related services. It is not possible to provide services such as account opening, fund transfer, and clearing settlement for virtual currency-related services, and virtual currency cannot be included in the scope of collateral and insurance liability.
2. Strengthen Internet information management for virtual currency. Internet companies must not provide virtual currency-related business support, marketing, or paid traffic services. (Overseas cryptocurrency exchanges are prohibited from providing services to Chinese investors)
3. Strengthen cryptocurrency business registration and advertising regulations. Business operators cannot include ‘virtual currency’, ‘cryptocurrency’, ‘crypto asset’, etc. in their business scope, and advertising regulations are strengthened.
4. Strengthen crackdown on illegal financial activities related to virtual currency, and severe punishment according to relevant laws when caught.
5. Strengthen the nationwide crackdown on money laundering, overseas gambling, cannon bankbooks, and cannon phones related to virtual currency.
6. Strengthen industry self-management.
