A warning by the Chinese government to financial
institutions against offering cryptocurrency services allegedly crashed
bitcoins.
A joint statement by the National Internet Finance
Association of China, the China Banking Association, and the Payment and
Clearing Association of China announced the ban.
The regulators declared that crypto had no real value,
adding that its price can be manipulated.
Bitcon investors in many counties are losing money as the
fall of the virtual currency hits 30 percent.
Bitcoin and ethereum posted their largest one-day drop since
March 2020, with losses close to $1 trillion, according to Reuters.
The global cryptocurrency market capitalization is now about
$2 trillion.
The global market was estimated at $792.53 million in 2019
and was expected to exceed $5 trillion by 2026, at a compound annual growth
rate (CAGR) of 30 percent.
The China statement below:
“Recently, the price of virtual currency has skyrocketed and
plummeted, and the speculation activities of virtual currency trading have
rebounded, seriously infringing on the safety of people’s property and
disturbing the normal order of economy and finance. In order to further
implement the requirements of the Notice on Preventing Bitcoin Risks issued by
Chinese Min Bank and other departments, and to guard against the risk of
speculation in virtual currency transactions, the China Internet Finance Association,
the China Banking Association and the China Payment Clearing Association
jointly announced the following on the relevant matters:
1. Correctly understand the essential attributes of virtual
currency and related business activities
Virtual currency is a specific virtual commodity, not issued
by the monetary authorities, does not have legal compensation and compulsory
monetary attributes, is not the real currency, should not and cannot be used as
currency in the market circulation.
To carry out the exchange business between legal and virtual
currency, to buy and sell virtual currency as a central counterparty, to
provide information intermediary and pricing services for virtual currency
transactions, token issuance financing, and virtual currency derivatives
trading and other related transactions, in violation of relevant laws and
regulations, and suspected of illegal fund-raising, illegal issuance of
securities, illegal sale of token coupons and other criminal activities.
2. The relevant institutions shall not carry out business
related to virtual currency
Financial institutions, payment institutions, and other
member units should effectively enhance social responsibility, may not use
virtual currency for products and services pricing, may not underwrite
insurance business related to virtual currency or include virtual currency into
the scope of insurance liability, may not directly or indirectly provide
customers with other services related to virtual currency, including but not
limited to: to provide customers with virtual currency registration,
transaction, clearing, settlement and other services; To carry out the storage,
custody, mortgage and other business of virtual currency, issue financial
products related to virtual currency, and use virtual currency as the
investment target of trust, fund, and other investments.
Member units such as financial institutions and payment
institutions should effectively strengthen the monitoring of virtual currency
transaction funds, rely on the industry self-regulatory mechanism, strengthen
risk information sharing, improve the level of joint prevention and control of
industry risks;
Internet platform enterprise member units shall not provide
network business premises, commercial display, marketing publicity, paid
diversion and other services for virtual currency-related business activities,
and shall promptly report the relevant problems and provide technical support
and assistance to the relevant investigation and investigation work.
3. Consumers should improve their awareness of risk
prevention, beware of property losses
The virtual currency has no real value support, price is
very easy to be manipulated, related speculative trading activities have false
asset risk, business failure risk, investment speculation risk, and other
multiple risks. From the existing judicial practice in China, virtual currency
trading contract is not protected by law, the consequences of investment
transactions and the resulting losses by the relevant parties bear.
The vast number of consumers should enhance risk awareness,
establish a correct investment philosophy, do not participate in virtual
currency trading speculation activities, beware of personal property and rights
and interests damage. We should cherish personal bank accounts and not use them
for activities such as recharging and withdrawing virtual currency accounts,
purchasing and selling related transaction top-up codes, and transferring
related transaction funds to prevent illegal use and disclosure of personal
information.
4. Strengthen the self-discipline management of member units
Each member unit shall strictly implement the relevant
regulatory requirements of the State, abide by the commitment of
self-discipline of the industry, and resolutely do not carry out or participate
in any business activities related to virtual currency. The three associations
will strengthen self-regulatory supervision of member units, and if they find
violations of relevant regulatory regulations and industry self-regulation
requirements, they will take disciplinary measures such as industry notification,
suspension of membership rights and cancellation of membership in accordance
with the relevant self-regulatory norms, and report to the financial
administrative departments that those suspected of committing illegal crimes
shall transfer the relevant clues to the public security organs.”
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com