The people’s Bank of China was forbidden to maintain cryptocurrency traders

The people’s Bank of China was forbidden to maintain cryptocurrency traders

The Department of business administration of the people’s Bank of China (PBoC) has published a document that obliges companies providing financial services to discontinue service to any transactions related to digital currencies.

According to Securities Times, the people’s Bank of China requires that a company providing financial services conducted an internal investigation and found no use of their services for operations with cryptocurrencies. If so, they should stop servicing these accounts. On the results of investigations of the company are required to report by 20 January.

The instrument, if genuine, is part of a plan to implement a wider ban on cryptocurrencies in China, it insists on Deputy-Manager of people’s Bank of China pan Gunsan.

Another edition of the Economic Observer, confirms the authenticity of the document referring to its sources in the people’s Bank of China.

The Department of business administration is a subdivision of the PBoC Beijing, which is responsible for monetary policy in the nation’s capital.

Although the author of the document is the Beijing division, the document requires from firms to conduct a similar investigation in all its branches.

While it remains unclear how this will affect the few of the crypto operations that are still carried out in the country. After last year, China banned the first holding of ICO, and then the activity of cryptocurrency exchanges, cryptocurrency activity has shifted to the OTC trade.

For example, Huobi and OKCoin, in the past, two major cryptocurrency exchanges in China, is now offering to work across platforms for OTC trading, at the same time, transactions in crypto-currencies and Fiat currencies separated. Traders sent the yuan using traditional channels such as Bank transfers, AliPay and WeChat Pay, which look like a simple transfer from one person to another.

The most popular OTC trading cryptocurrency uses the Telegram as it is outside the jurisdiction of the government of China.

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