China’s central bank calls for tougher measures on digital currencies

The People’s Bank of China has held talks with a number of Chinese banks and financial institutions, urging them to thoroughly screen clients’ accounts for cryptocurrency transactions, and cut relevant payment links.

“Speculative trading in virtual currencies roils economic and financial order, spawns the risks of criminal activities such as illegal asset transfers and money laundering, and endangers people’s wealth,” the regulator said in a statement on Monday.

The PBOC’s meeting reportedly included the Agricultural Bank of China (AgBank), China Construction Bank (CCB), Industrial and Commercial Bank of China (ICBC), Postal Savings Bank of China, and online payment service Alipay.

The regulator demanded that payment companies and financial institutions invest more in technologies that could help to quicker identify crypto-related manipulations, and to better know their clientele.

AgBank, ICBC, CCB and Alipay released statements pledging to conduct due diligence on clients to liquidate illegal crypto-related practices and close suspicious accounts.

The move comes as part of a broader state-run campaign rolled out by the Chinese regulators against cryptocurrencies. Beijing has also banned mining in major bitcoin hubs, such as Sichuan, Xinjiang and Inner Mongolia.

Moreover, Chinese watchdogs have blocked a long list of cryptocurrency-related social media accounts, and banned searches for major crypto exchanges, including Binance and Huobi on search engine Baidu and social media platform Weibo.

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