The People’s Bank of China (PBOC) has invited China’s prominent financial institutions to a meeting to reinforce a state-of-the-art ban on bitcoin services, Bloomberg mentioned. The institutions were called in to assist the central bank in preventing Chinese citizens from trading bitcoin through exchanges and over-the-counter trading platforms.
“Banks and payment institutions must strictly implement … regulatory requirements, earnestly fulfill customer identification obligations, and must not provide account opening, registration and registration for [virtual currency-related] Activities,” translated version of the PBOC statement Read. “Institutions should thoroughly investigate and identify virtual currency exchanges and over-the-counter merchant capital accounts, cut off the payment link for transaction funds in a timely manner… and effectively improve monitoring and identification capabilities.”
China has taken similar Actions to try to ban Bitcoin trading in the country in the recent past. However, with this new decision, the government is now trying to ban individuals from accessing cryptocurrency altogether. In addition, local banks have been ordered to limit and stop payments from accounts to any institution that may provide bitcoin trading services. This indicates that the recent regulations are taking the Chinese bitcoin ban to an important new level, threatening to shut down access to the banking system from those who engage in bitcoin trading activities.
Organizations summoned to the recent meeting of the People’s Bank of China (PBOC) pledged to increase and strengthen their screening capabilities for cryptocurrency activities and close related accounts. Organizations that participated in the meeting include major payment processor Alipay, Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank and Postal Savings Bank.
Bitcoin mining shutdown in China
In May, China’s State Council call To strictly crack down on Bitcoin mining and trading activities. Since then, several provinces in the country have taken effective measures to enforce this crackdown, as have some ISPs. For example, Baidu was like Google and Twitter-like Weibo Censorship of keywords related to bitcoin exchange. Bitcoin miners in Zhundong Development Park in Xinjiang received a notice in early June asking them to do so. Immediately stop their operations.
Other Chinese provinces have also taken similar measures. For example, Yunnan Energy Bureau has asked its departments to do so Bitcoin mining companies check in the area for illegal activities. Recently, the officials of the largest Bitcoin mining center in Sichuan Province have He reportedly issued orders To shut down regional bitcoin mining operations for inspection.
It is not possible to ban Bitcoin
Representatives of Canaan, a Chinese Bitcoin Mining Hardware Manufacturer He argued against the country’s campaign in the industry, by saying that Bitcoin mining reduces energy waste, helps create jobs and fuels the local economy. But this does not seem to have any effect.
As a result, China has recently shown how the country can move towards a total ban on Bitcoin through its actions at the state and provincial levels.
But she might realize that this is after all a fools’ game, since then Bitcoin can’t be bannedInstead, it simply seeks to cut off the paths its citizens might take to access bitcoin services — making it difficult for the Chinese to buy and sell bitcoin, likely affecting the total price Short term. But this may turn out to be the wrong attitude to take. Instead, game theory is likely to prevail, and it will be the host countries that will reap the economic benefits of adopting a country-neutral, sovereign monetary commodity. All other money is obsolete.