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Chinese banks and financial institutions ban cryptocurrency
As China cracks down on crypto, Bitcoin miner BIT Mining Ltd. delivered its first batch of mining machines to Kazakhstan — China Market Watch
This week, the cryptocurrency market experienced further sell-offs following the People’s Bank of China’s ban on cryptocurrencies for banks and financial institutions. The Agricultural Bank of China and the Postal Savings Bank of China followed suit by prohibiting cryptocurrency dealings.
Following the Bitcoin mining ban in the Sichuan province last week, New York Stock Exchange-listed BIT Mining Ltd. expanded its overseas presence by shipping a new batch of mining machines to Kazakhstan.
In Beijing, meanwhile, the Industrial and Commercial Bank of China allowed for the direct conversion between Chinese yuan and the nation’s digital currency, DCEP, via more than 3,000 automatic teller machines.
Here’s everything you may have missed regarding these stories, and more, in this week’s edition of China Market Watch from OKEx Insights.
People’s Bank of China bans crypto
The People’s Bank of China ordered major banks and financial institutions to stop providing digital currency transactions — such as trading, clearing and settlement.
Additionally, financial institutions must identify capital accounts from digital currency exchanges and over-the-counter dealers, and cut off the cryptocurrency payment flows for these accounts.
- The PBoC’s statement has been blamed for further sell-offs in the cryptocurrency market.
- The central bank is prohibiting digital currency transactions to mitigate the risks of illegal cross-border transactions and money laundering.
- The PBoC consulted with the Agricultural Bank of China, Construction Bank, Postal Savings Bank, Industrial and Commercial Bank, Industrial Bank and Alipay (China) Network Technology prior to the announcement.
Agricultural Bank of China prohibits crypto transactions
The Agricultural Bank of China reiterated its commitment to prohibiting cryptocurrency transactions. As stated in its announcement, AgBank will neither facilitate any cryptocurrency dealings nor onboard customers engaged with cryptocurrency businesses.
- The announcement supports the PBoC’s initiative to prohibit digital currency transactions.
- The Postal Savings Bank of China is also prohibiting cryptocurrency dealings.
Chinese Bitcoin miner delivers machines to Kazakhstan
The mining machines shipped to Kazakhstan — with a theoretical maximum hash rate capacity of 18.2 petahash per second — are expected to commence operations on June 27.
- The latest move to Kazakhstan follows the complete shutdown of Bitcoin mining operations in the Sichuan province. The company ceased operations for its Ganzi Changhe Data Center in Sichuan following a power cut by the state energy regulator.
- The company will deliver an extra 2,600 mining machines to Kazakhstan before July 1. The machines combined a theoretical maximum hash rate capacity of 102.3 PH/s.
ICBC ATMs in Beijing enable DCEP conversion
The Industrial and Commercial Bank of China has reportedly enabled the direct conversion of DCEP and Chinese yuan at more than 3,000 ATMs in Beijing.
- The currency conversion feature allows users to deposit and withdraw DCEP directly from their bank accounts.
- ICBC is not the first bank to trial DCEP support in ATMs. In January, the Agricultural Bank of China enabled DCEP ATM trials in Shenzhen.
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