Chinese central bank, the People’s Bank of China, has vowed to continue intense regulatory pressure on cryptocurrencies transactions and speculation.
The bank has also asked financial companies and banks to revise their practices and not engage in cryptocurrency operations. Banks were asked to not provide services such as trading, clearing, and settlement for cryptocurrency transactions.
The announcement was released on July 31 where People’s Bank of China laid out eight key tasks that need to be addressed. The meeting’s purpose was to dwell on the monetary policy progress in the first half of 2021 and endeavor for the second half of 2021.
Agriculture Bank of China (AgBank), China’s third-largest lender by assets, has said it will follow the authority’s guidelines and restrict crypto trading and mining activities. Recently, the People’s Bank of China and other government agencies imposed stringent regulations targeting monopolistic behavior from companies. The move came after the initial public offering (IPO) of Ant Group in November 2020.
China has also recently banned the mining of cryptocurrencies in its country. The country was previously popular for mining, contributing over 65% of Bitcoin hashrate, because of its affordable electricity and smooth hardware supply chains.
Websites of crypto exchanges such as Binance, Huobi, and OKEx were blocked by the country’s most popular internet search engines and social media platforms in June.
Other key issues addressed in the meeting were promoting green finance, encouraging and globalizing the use of digital yuan, and open financial markets.
In May, three financial companies announced their departure from providing cryptocurrency-related services. In June, People’s Bank of China concluded hearings from major banks reiterating their ban on crypto services.