Chinese Reserve Bank Proscribes Crypto Activities

Chinese Reserve Bank Proscribes Crypto Activities

The Agriculture Bank of China rated as the third biggest bank globally has started carrying out the Beijing new policy on cryptocurrencies. The antagonistic approach of the Chinese government is expressed fully via the bank as they have started detailed verification processes to ensure that their clientele community has no involvement with cryptocurrencies.

The People’s Bank of China in a formal meeting with the big gun bank, local commercial banks and other financial institutions directed that customers who have connections to crypto related transactions should be disallowed from engaging in banking operations. The Chinese central bank announced that the various financial institutions should be detailed in their inquiries before engaging in any transaction especially when it has to do with virtual currencies.

However, the Agriculture Bank is the first in China to declare its stance regarding cryptocurrencies which nonetheless is in tandem with persistent prohibitory crypto policies. Different financial supervisory bodies in the country have also declaratively stated that citizens should desist from illegitimate activities as regards cryptocurrencies and other blockchain fora that promote virtual currencies. They have also warned financial institutions to avoid knowingly or unknowingly getting involved in cryptocurrency transactions.

The Agbank has emphasized that customers who are found involved in crypto exchanges will have their accounts closed. The bank previously requested its clientele to give information on any crypto related fraudulent activity they observe but currently they have removed the appeal from their statement.

China placed a ban on crypto transactions as far back as 2017 during the bullish market era, 2021 however has consolidated their aversion for crypto. In the middle of last month, three notable Chinese trade bodies warned citizens about the risky nature of crypto investments. The country’s clampdown on crypto mining was based on carbon emissions concerns of the process. At least three major mining Companies have stopped activities. The internet firms in China have also banned crypto related profiles.


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