AGI – China’s crackdown on cryptocurrencies, which caused the value of the major virtual currencies to collapse, starting with bitcoin, which slipped below $ 40,000, again falling after Elon Musk’s comments last week on stopping its use for the purchase of Tesla cars. China has banned financial institutions from providing financial services related to cryptocurrency transactions, warning investors about it volatility virtual currencies.
In a note, the three associations China Internet Finance Association, China Banking Association and China Payment and Clearing Association stressed that “recently the values of cryptocurrencies have soared and plummeted and speculative trading has resumed, breaking the security of people’s property and disrupting the normal economic and financial order “.
Financial institutions – which refer to the warnings issued by the Chinese central bank on the risks associated with trading cryptocurrencies – must therefore not use cryptocurrencies for products and services, underwrite insurance activities relating to virtual currencies and “must not provide customers directly or indirectly other services relating to virtual currencies “.
Cryptocurrencies, specify the three associations, “they are not supported by the actual value and their price is extremely easy to manipulate, “and the transactions” are not protected by Chinese law. “
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