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China bans financial institutions from providing cryptocurrency services

China attacks cryptocurrencies again with a ban that affects entities such as banks and electronic payment managers.

It looks like the “China FUD” of this bull season is here. China would have once again prohibited the free use and business development of cryptocurrencies.

On this occasion, the main objective of the blockade would be banks and electronic payment management companies. To which the possibility of offering any service related to the registration, trade and withdrawal of cryptocurrencies is denied.

The Chinese government had previously focused on currency exchange platforms. Which had to change location in order to continue operating.

Initial coin offerings (ICOs) and the participation of their citizens in them were also prohibited.

On the other hand, the three institutional pillars of the Chinese economy, the national internet finance association, the banking association and the payments association of China, have wanted to alert all investors about the risks of cryptocurrencies.

According to this set of institutions, there are various problems related to investing in cryptocurrencies.

First they want to warn the population that these currencies are not “real” since they are not backed by any central bank, so they should not be used as a means of exchange for goods or services.

They also claim to be highly volatile assets and subject to being easily manipulated, so their danger is very high and they reiterate their opposition to the risk involved in investing in them.

Thus with these statements we find something that seems to be already a classic in the bull markets of Bitcoin.

Statements of this type always appear that seem to take the price of Bitcoin well down.

The “china fud” has represented a great buying opportunity in other years and if history repeats itself, it could be again.

Although it seems that this year Elon Musk’s Tweets have garnered more attention than movements from large countries.

From what we know, the fundamentals of Bitcoin and other cryptocurrencies do not appear to have changed for the worse. In fact, they are stronger every day by having a more solid network with more nodes registering the blockchain.

We will see the consequences of these new measures taken by the Chinese government. And if the impact on the price of cryptocurrencies has just put an end to the bull market.


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