Bitcoin’s Obstacles Mount Amid China Cryptocurrency Warning

rpm

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Bitcoin’s Obstacles Mount Amid China Cryptocurrency Warning

Bitcoin and other major cryptocurrencies slumped after the People’s Bank of China conveyed a statement reiterating that digital tokens can’t be used as a form of payment.

The largest token fell as much as 7.3% to $40,139 in Asia on Wednesday, continuing a weeklong slide sparked by Elon Musk’s back-and-forth comments on Tesla Inc.’s holdings of the coin. Ether, Dogecoin and last week’s sensation, Internet Computer, also retreated.
 

HavocXphere

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FUD.

It wasn't even the PBOC...it was China Internet Finance Association, China Banking Association, China Payment and Settlement Association.

Anyway here is a (machine translated) copy of this statement

China Internet Finance Association China Banking Association China Payment and Clearing Association Announcement on Preventing the Risk of Hype in Virtual Currency Transactions​

NIFA China Internet Finance Association Yesterday
Recently, virtual currency prices have soared and plummeted, and virtual currency trading speculation has rebounded, which has seriously infringed on the safety of the people’s property and disrupted the normal economic and financial order. In order to further implement the requirements of the "Notice on Preventing Bitcoin Risks" and "Announcement on Preventing Token Issuance Financing Risks" issued by the People's Bank of China and other departments, to prevent the risks of virtual currency transaction speculation, China Internet Finance Association, China Banking Association , China Payment and Settlement Association jointly announced the following related matters:
1. Correctly understand the essential attributes of virtual currency and related business activities
Virtual currency is a specific virtual commodity that is not issued by the monetary authority, has no monetary properties such as legal compensation and compulsion, is not a real currency, and should not and cannot be used as currency in the market.
Carrying out legal currency and virtual currency exchange and exchange business between virtual currency, buying and selling virtual currency as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and virtual currency derivative transactions and other related transaction activities, Violation of relevant laws and regulations, and suspected of illegal fund-raising, illegal issuance of securities, illegal sale of tokens and coupons and other criminal activities.
2. Relevant institutions shall not conduct business related to virtual currency
Financial institutions, payment institutions and other member units must earnestly strengthen their social responsibilities. They must not use virtual currency to price products and services, underwrite insurance businesses related to virtual currencies or include virtual currencies in the scope of insurance liability, and must not directly or indirectly provide customers with other services. Services related to virtual currency, including but not limited to: providing customers with virtual currency registration, trading, clearing, settlement and other services; accepting virtual currency or using virtual currency as a payment and settlement tool; developing virtual currency exchange services with RMB and foreign currencies; Develop virtual currency storage, custody, mortgage, etc.; issue financial products related to virtual currency; use virtual currency as investment targets for trusts, funds, etc.
Financial institutions, payment institutions and other member units should effectively strengthen the monitoring of virtual currency transaction funds, rely on industry self-discipline mechanisms, strengthen risk information sharing, and improve the level of industry risk joint prevention and control; if clues of violations of laws and regulations are found, they must promptly adopt restrictions, suspensions or procedures in accordance with procedures. Terminate relevant transactions, services, and other measures, and report to relevant departments; at the same time, actively use multi-channel and diversified access methods to strengthen customer publicity and warning education, and take the initiative to make warnings about risks related to virtual currencies.
Internet platform enterprise member units shall not provide services such as online business premises, commercial display, marketing promotion, paid diversion, etc. for virtual currency-related business activities. If clues of related problems are found, they shall promptly report to relevant departments and provide technical support for related investigations and investigations. And assistance.
3. Consumers should improve their awareness of risk prevention and beware of loss of property and rights
Virtual currency has no real value support, and prices are extremely easy to be manipulated. Related speculative trading activities have multiple risks such as false asset risks, business failure risks, and investment speculation risks. Judging from the current judicial practice in my country, virtual currency transaction contracts are not protected by law, and the consequences and losses caused by investment transactions are borne by the parties themselves.
Consumers must increase their risk awareness, establish correct investment concepts, refrain from participating in virtual currency trading hype activities, and beware of personal property and rights damage. Personal bank accounts should be cherished and not used for virtual currency account recharge and withdrawal, purchase and sale-related transaction recharge codes, and transfer of relevant transaction funds, etc., to prevent illegal use and personal information leakage.
4. Strengthen the self-discipline management of member units
All member units must strictly implement relevant national regulatory requirements, abide by industry self-discipline commitments, and resolutely refrain from conducting or participating in any business activities related to virtual currencies. The three associations will strengthen the self-discipline supervision of member units, and if they find violations of relevant regulatory regulations and industry self-discipline management requirements, they will take sanctions such as industry notification, suspension of membership rights, and cancellation of membership in accordance with relevant self-discipline regulations, and report to the financial management department If the report is suspected of violating the law or crime, the relevant clues shall be transferred to the public security organs.


China Internet Finance Association
China Banking Association
China Payment and Clearing Association
May 18 2021
 
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