China’s central bank warns financial institutions not to provide virtual currency services

The Chinese government has recently been stepping up its crackdown on virtual currencies. The central bank issued an announcement on Tuesday, reminding financial institutions under its jurisdiction not to provide virtual currency services.

The WeChat public number of the Central Bank’s Business Management Department issued a “Risk Alert on Preventing Virtual Currency Trading Activities” on the same day, pointing out that relevant institutions shall not provide business premises, commercial displays, marketing and promotional services for virtual currency-related business activities, nor shall they provide virtual currency services directly or indirectly for customers. The central bank also said that the Beijing Municipal Local Financial Supervision Authority also recently joined the central bank and other relevant departments to rectify Beijing Tract Culture Development Co. which is suspected of providing software services for virtual currency trading, and ordered the company to cancel and its official website has been deactivated.

In addition, Beijing authorities have also recently increased the consolidation of virtual currency “mining”. After Inner Mongolia and Qinghai, Sichuan, a major “mining” province, also announced that it has started to retire “mining” projects and stopped supplying electricity to them from June 20.