Three Chinese financial associations have banned all financial institutions and payment companies from providing services related to cryptocurrency trading, and warned the public about cryptocurrency speculation.

China bans financial companies from dealing with cryptocurrencies, still allows investment
According to Reuters news agency, China’s three financial self-regulatory associations, the National Internet Finance Association, the Banks Association of China and the China Payment Processors Association, on May 18, simultaneously announced The notice requires financial institutions, including banks and payment processors, not to offer crypto-related transactions, including registration, transactions, and payments.

However, these are only three self-regulatory associations operating under the supervision of the Central Bank of China and the China Securities Regulatory Commission. They are not actual financial regulators, but are responsible for ensuring that member institutions comply with Chinese laws.

The announcements of these financial associations read:

“Recently, the price of cryptocurrencies has gone up and down violently, resurfacing cryptocurrency speculation, threatening people’s assets, and disrupting the normal economic and financial order. .”

The latest “ban” above is a continuation of the 2017 ban on exchanges and ICOs, though, Chinese financial authorities have yet to put in place any restrictions on cryptocurrency trading. The new Beijing government warned people about the risks of investing in cryptocurrencies, including that the value of these coins can fluctuate, are not guaranteed by real value and are not legalized. recognized by Chinese law.

According to Coin68, this is just a new FUD that was “timed” to be stuffed into the market after the recent wave of bad news. China has long been extremely strict with cryptocurrency investment, although it has not outright banned people from participating in this field.

Even so, the prices of the leading cryptocurrencies have plummeted. BTC plummeted from $46k to $41k, wiping out all the recoveries today.