Share articles to

Academy Industry Analysis Article
CBDC China Market Watch OKEx Insights Mining

Chinese banks and financial institutions ban cryptocurrency

2021.06.24 Matthew Lam

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.

Key takeaways

  • 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.

Key takeaways

  • 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

Headquartered in Shenzhen, Bitcoin miner BIT Mining Ltd. delivered its first batch of mining 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.

Key takeaways

  • 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.

Key takeaways

  • 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.

OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals. 

Follow OKEx Insights on Twitter and Telegram.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.



%d bloggers like this: