A new order from three major Chinese financial organizations has directed all banks to prohibit customers from accessing cryptocurrency trading or storage, essentially halting all cryptocurrency transactions in the country. The registry reports that, in addition to banning access to cryptocurrencies, the China National Internet Finance Association, the China Banking Association, and the China Payments and Clearing Association have also requested financial institutions not to provide credit insurance for businesses or investments in cryptocurrencies. The order also warns Chinese citizens about the dangers of cryptocurrency, saying that virtual currency is a bad investment because it can be easily manipulated. Furthermore, it has been reported that web platforms have been urged not to lend hosting space to any crypto company. It further tightens the knot by banning all advertising for any commercial activity related to cryptocurrency, including cryptocurrency mining operations.
Blockchain without crypto
China's strong opposition to cryptocurrencies comes even as the country is home to many large Bitcoin mining operations. In fact, some of the fastest cryptocurrency miners in the world are made by Chinese companies like Linzhi and Bitmain. The new order is said to stem from a 2019 People's Bank of China decision that called for blocking access to all cryptocurrency exchanges and initial coin offering services. Despite its apparent aversion to all things cryptocurrency, CNBC reports that the country has not had any problems with its underlying blockchain technology. Indeed, in the year that his central bank called for a ban, Chinese President Xi Jinping has praised blockchain technology, calling on the country to "seize the opportunities" it presents. It will be interesting to see how the country now innovates with the technology after banning one of its most important use cases. LaComparacion has the support of its audience. TechRadar does not endorse any cryptocurrency or blockchain-based services, and readers should not construe TechRadar content as investment advice. Our journalists only hold small amounts of cryptocurrency (valued at less than €100), which are required for portfolio and exchange reviews, and do not hold shares in any currency of the publicly traded cryptocurrency company. through registration