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China’s central bank said on Monday it had urged several payment companies and banks to crack down on cryptocurrency speculation, adding to Beijing’s calls for restrictions on bitcoin and other digital currencies.
The People’s Bank of China said it summoned major lenders, including the Industrial and Commercial Bank of China and the Agricultural Bank of China, and Alipay, the mobile payment service run by the Alibaba Ant Group subsidiary, to tell them that ‘they must not provide crypto-related services. .
The comments reinforce Beijing’s hard line on crypto. In 2017, the Chinese government banned so-called initial coin offerings, a way to issue new digital tokens and raise funds. Authorities have also cracked down on companies involved in crypto operations, such as local exchanges.
In May, China said financial institutions and payment companies were banned from providing services related to crypto transactions.
Alipay said on Monday it would “continue to thoroughly investigate and strike against virtual currency transactions” and “step up” its crackdown on crypto.
“We reiterate that Alipay does not conduct or participate in any commercial activity related to virtual currencies and does not provide any technical support services or capabilities,” the company said, according to an English translation of an article posted on the site. of Weibo social media.
“Alipay will immediately remove its payment service related to any virtual currency transaction it detects. Alipay will firmly remove any merchants involved in virtual currency transactions.”
The price of bitcoin fell to a two-week low on Monday following news of China’s expanding crackdown on cryptocurrency mining to southwestern Sichuan Province, a region known for its rich hydroelectric resources.
– CNBC’s Arjun Kharpal contributed to this report.
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