China's central bank strengthens anti-crypto policies

English Jun 21, 2021

The Central Bank of China has called on Chinese banks and payment institutions to stop providing financial services to cryptocurrency companies, including account opening, transactions and settlements.

The Central Bank interviewed the five main banks in the country and requested that they not participate in any type of business involving crypto.

The Central Bank's announcement comes amid China's broader efforts to crack down on the crypto sector, especially the miners.

China has a list of provinces that includes Xinjiang and Inner Mongolia as places where it's not permitted to mine bitcoins. Last week, the government added Sichuan to the list, one of the provinces most in demand for such activity.

Since then, half of the Bitcoin network hashrate has been turned off by China, returning to mid-2020 levels.

Some analysts argue that Bitcoin's crackdown on mining is a geostrategic mistake for China and a chance for the US to secure jobs, its power grid and strengthen its position in the new digital economy.


Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.