Chinese Officials Say Bitcoin Trading “Blocked” by Large Banks Again, Implying New Signals Tighter Regulation Is Trending

Bitcoin trading has recently been “blocked” again by some large commercial banks, the official Chinese Communist Party media outlet China Securities Journal said on Monday, possibly signaling new signals of tighter regulation, while a broader consensus is forming to strengthen regulation of virtual currency trading.

According to a commentary published on CSI’s website, the recent ban on bitcoin trading by a domestic joint-stock bank is not the first time a financial institution has “blocked” bitcoin trading; in 2014, shortly after the Chinese central bank and other departments jointly issued a notice on preventing bitcoin risks, more than a dozen domestic commercial banks have announced a ban on bitcoin trading.

“In the view of some observers, the fact that financial institutions have recently taken another shot at bitcoin trading after many years may release new signals of strict regulation.” the article said.

The article also said that bitcoin-related transactions are facing increasingly strict scrutiny and regulation around the world. Regulators in several countries have already either explicitly banned trading or introduced policies to severely restrict it. In recent years, the domestic authorities have maintained a high level of regulation on virtual currency trading, and have continued to increase the level of the trend.

As a result, bitcoin fell 2.9%; ethereum sank 4.8%, falling through its 21-day moving average and sitting below the Fibonacci support level of $3,429.