In China’s latest attempt at suppressing the rapidly growing digital market, it banned financial and payment institutions from performing any services or transactions related to cryptocurrency.
On Tuesday, the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China provided a joint statement in relevance to this ban.
The statement mentioned that the ban covered institutions like banks and online payment channels, preventing them from providing any services or transactions which involved cryptocurrency.
Even investors were cautioned by the country, against any speculative trading involving cryptocurrency.
In their statement, the three industry bodies explained the reason for this ban, saying, “Recently, cryptocurrencies have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
China having banned certain institutes from practicing in cryptocurrency, however, hasn’t prevented their citizens and individuals from holding any of it.
The statement provided by the three bodies also happened to shed light on the risks emanating from cryptocurrency trading.
Some of these risks were that, virtual currencies “are not supported by real value”. This would make it very easy for the prices to be meddled with and manipulated.
At the same time, Chines law doesn’t offer protection over any trading contracts.
In 2021, Global Economic Growth was 5.5%. But the latest UN Report predicts only 4% Global Economic Growth in 2022,...Read more