The People's Bank of China (PBoC), the country's central bank, has ordered banks not to facilitate any cryptocurrency transactions.
As follows from the statement shared yesterday by the institution, banks should not allow trading, clearing and settlement of crypto-related transactions in order to avoid increasing negative sentiment in the crypto markets.
Yesterday it was reported that the Agricultural Bank of China, one of the 4 largest banks in the country, had published an announcement informing its users it was ceasing to offer services related to cryptocurrencies. However, the announcement was removed just a few minutes later.
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In addition to not providing these services, banks in the country are also required to identify the capital accounts of virtual currency platforms and over-the-counter dealers, and cut off the payment link for transaction funds in a timely manner.
It must be noted that the markets have quickly reacted to the news, as the price of Bitcoin has fallen to $32,000 and that of Ether below $2,000 for the first time since last May 23.
The institution argues it has taken this decision due to the risk they pose by allowing illegal cross-border transactions as well as money laundering.