China Reiterates Crypto Bans From 2013 and 2017

Regulators cite the dangers of speculative trading.

AccessTimeIconMay 18, 2021 at 3:14 p.m. UTC
Updated Sep 14, 2021 at 12:57 p.m. UTC

The National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China reiterated their stance on banning crypto services.

The three entities published a note Tuesday confirming bans originally implemented in 2013 and 2017 that bar financial and payment institutions from providing any services related to cryptocurrency transactions and saying that initial coin offerings remain illegal.

"Virtual currency's prices have soared and plummeted recently, resulting [in] a rebound of speculative trading activities of virtual currency," the report said. "It has seriously damaged the safety of the people's investment and damaged the normal economic and financial orders."

The goal of the notice, according to the statement, is to reiterate the previously announced bans on cryptocurrencies.

In 2013, China's central bank barred financial institutions from handling bitcoin transactions, according to a notice from China Securities Regulatory Commission.

And then again in 2017, the central bank in China declared initial coin offerings as illegal, which caused bitcoin's price to fall.

At press time, bitcoin was changing hands at $43,269.37, down 2.62% in the past 24 hours, according to the CoinDesk 20.

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