What is the ban on cryptocurrency?

Under the ban, such institutions must not offer any service involving cryptocurrency, such as registration, trading, clearing and settlement, three industry bodies said in a joint statement.

Can banks and online payments channels offer cryptocurrency services?

Under the ban, such institutions, including banks and online payments channels, must not offer clients any service involving cryptocurrency, such as registration, trading, clearing, and settlement, three industry bodies said in a joint statement on Tuesday.

How do cryptocurrency payments work?

Instead of being physical money that is carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database that describe specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. You store your cryptocurrency in a digital wallet.

How will cryptocurrency change the banking industry?

Where cryptocurrency radically changes this trend is that it dramatically limits the role of standard financial institutions of clearing and settling payments. As cryptocurrency gains traction, in theory, it is possible that the traditional bank intermediary will no longer be needed.