Chinese trade associations warn against investing in cryptocurrencies

The China Internet Finance Association has signed a joint statement with the China Banking Association and the China Payments and Clearing Association. Warning the public of the risks of investing in cryptocurrencies.

According to a report by Shanghai Securities News on Tuesday The above-mentioned People’s Bank of China Trade Association issued a statement entitled “Preventing the Risk of Speculation in Virtual Currency Transactions”.

The joint statement would be an extension of the PBoC’s earlier announcements on Bitcoin (BTC) and the risks of cryptocurrencies.

Chinese trade associations warn against investing in cryptocurrencies
Chinese trade associations warn against investing in cryptocurrencies

As part of the publication The three associations outlined four themes related to investing in cryptocurrencies, starting with a call to their members to understand the nature of digital currencies.

According to the statement, Cryptocurrencies are not “real currencies” and should not be used as a medium of exchange for goods and services.

In July, the Beijing Arbitration Commission issued a decision declaring that Bitcoin is a virtual commodity.

For your second point Trade associations warned financial institutions and other member organizations not to trade in cryptocurrencies. An excerpt from the document, which deals specifically with Internet platforms, reads:

The corporate members of the Internet platform do not offer any services such as online business premises, trade shows, marketing advertising, paid redirection, etc. for business activities related to virtual currencies. If related clues or problems are found, they should immediately report to the appropriate departments and provide technical assistance for appropriate investigations and assistance. “

The trade associations also warned retailers to be wary of the risks of investing in cryptocurrencies, while also urging member institutions to comply with existing legal requirements regarding digital currencies.

China banned token issuance and trading in cryptocurrencies in 2017, forcing major exchanges to move out of the country. This action was followed by a series of often contradicting statements about cryptocurrencies, and the government appears to favor the “blockchain, not bitcoin” narrative.

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