Chinese Banks Including Gongsang Bank Immediately Close Cryptocurrency Trading Accounts and Freeze Funds
Alipay and Other Electronic Payment Services Permanently Restricted
[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese authorities have implemented strong measures that permanently ban the use of electronic payment services such as Alipay and delete bank accounts if individuals are caught trading cryptocurrencies like Bitcoin.
On the 21st, the People's Bank of China, the central bank, summoned key banks and Alipay officials in the form of "scheduled interviews" and demanded the crackdown on cryptocurrency trading. Immediately after, the financial institutions called in for the interviews issued statements on the 22nd pledging to thoroughly comply with the authorities' directives.
According to statements released by Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Postal Savings Bank, and Xingye Bank, if accounts used for cryptocurrency trading are discovered, the banks will freeze the transactions and immediately delete the accounts.
Alibaba Group’s Alipay, China’s largest electronic payment provider, also issued a separate statement saying it will strengthen transaction monitoring and immediately freeze any accounts found engaging in cryptocurrency trading. Alipay went further by emphasizing that it will strictly block cryptocurrency-related businesses from accessing its electronic payment services altogether.
Furthermore, if cryptocurrency-related businesses are identified, they will be placed on a blacklist and their usage will be immediately suspended. Depending on the severity of the violation, Alipay warned that it could restrict these businesses from ever receiving money from others through its platform for life.
This move by Chinese authorities is expected to make cryptocurrency trading virtually impossible within China.
Chinese citizens will find it inconvenient to trade with major Chinese cryptocurrency exchanges such as Binance. Until now, Chinese users paid yuan using Alipay accounts or registered domestic bank accounts to purchase cryptocurrencies like Bitcoin on these exchanges. Conversely, proceeds from selling cryptocurrencies were deposited into Alipay accounts or registered bank accounts and could be cashed out.
The People's Bank of China reiterated its crackdown policy, stating that "cryptocurrency trading and speculation are illegal, encourage crimes such as illegal overseas asset transfers and money laundering, and seriously threaten the safety of the people's property."
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