A new decision adopted by China states that financial establishments and payment operators of the country are disallowed to deliver services concerning crypto activities. The country also urged investors to be careful while purchasing crypto. Particularly, it said cryptocurrencies don't represent real cost and purchase deals are not secured by Chinese law.
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In a statement provided to Reuters by the country's National Internet Finance Association, the Banking Association, and the Payment and Clearing Association, it is mentioned that establishments like banks and online remittance operators can't offer customers any service connected with cryptocurrencies. This includes registration, purchasing, clearing, and settlement. Additionally, they must not carry out storing, trust, or deposit services, nor develop financial products related to crypto.
The sources noted in the announcement that the huge price volatility of cryptocurrencies happened lately raised speculations, thus violating the safety of people's capital and wrecking the regular economic state.
China prohibited crypto exchanges and ICOs but individuals are allowed to hold crypto.