Self-regulatory bodies in China have once again reiterated the country's position on cryptocurrencies and financial institutions that seek to serve them. China's most recent reports reveal that self-regulatory bodies have reaffirmed the ban on financial institutions and payment companies from providing banking services to cryptocurrency traders and related entities.According to the original report, the move stems from high volatility in the crypto market, which allegedly exposes people's property to risk.In a joint statement by three industry organizations in the country, China stated that the rise and fall of cryptocurrency prices are "disrupting the normal economic and financial order".
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According to the report, the three industry bodies are the China Banking Association, the National Internet Finance Association of China and the Clearing Association of China. According to the statement, they believe that cryptocurrencies “are not supported by real value. ”, And their prices are easily manipulated. With the restrictions now in place, all financial institutions, including banks and other payment platforms, cannot offer their services to customers dealing with cryptocurrency. These services include registration, trading, clearing and settlement. Although China has banned banks from serving crypto market entities, investors and traders are not prohibited from engaging with the asset class. Cryptocurrency traders in China need only find a way to conduct its cryptocurrency activities without using banks, which is possible through peer-to-peer channels. Meanwhile, China is not the first country to ban financial institutions from serving crypto exchanges and related companies. Earlier this year, Nigeria's central bank banned banks from facilitating cryptocurrency transactions. Despite the ban, several reports have revealed that the volume of cryptocurrency trading in the country continues to increase, thanks to P2P platforms.