Bitcoin got noticeably worse over the weekend when the price of the main cryptocurrency on the market fell below $33,000. One of the reasons for this could be the latest news from a large Chinese bank.
One of the financial giants of the Middle Kingdom, the Agricultural Bank of China (ABC), announced a ban on financial transactions related to digital currencies. Information about this began to appear in local, and then in international social networks. The bank itself soon deleted its official statement, but, apparently, a short period of time was enough to sow FUD on the crypto market.
The bank announced that it does not conduct any commercial activity with cryptocurrencies and intends to further strengthen the monitoring of customer transactions. In case of detection of prohibited types of transactions, representatives promise to suspend all activity on the account and terminate the contract with clients immediately. In addition, once again, citizens of the country were asked to report transactions related to cryptocurrencies, if any.
It looks like the bank's austerity will apply to both individuals and legal entities. The ABC News stated that bank accounts, products, and services should not be linked in any way with digital currency financing.
A little later, additional information appeared from the Chinese publication that the leadership of the People's Bank of China appealed to the five largest banks in the country, urging them to restrict all transactions related to cryptocurrencies. The list also mentioned the popular Alipay payment system.
Departments of the People's Bank of China noted that cryptocurrency trading disrupts financial and economic “order”, creating risks of illegal transactions and cross-border remittances in the equivalent of a new asset class. Thus, the main reason for the ban was the safety of citizens and their savings.
Perhaps, over time, severe restrictions will be lifted, but so far it does not seem that China intends to soften its policy towards digital currencies in all its manifestations.