China orders banks to stop financing cryptocurrencies as noose tightens around disrupter

via scmp:

Central bank circular seen by the Post instructs banks that the provision of services for cryptocurrency trading is ‘strictly prohibited’

The Chinese-language document, as seen by the South China Morning Post, was distributed as an internal document among banks, and not published on the central bank’s official website.

“Banks should enhance their daily transaction monitoring, and the timely shut down of the payment channel once they discover any suspected trading of cryptocurrencies,” the document said, adding that the deadline for disclosing the measures is on January 20. The emphasis was on handling any capital settlement to avoid any financial losses by cryptocurrency investors from escalating into public protests – known as “group events” in China – and preserve social stability, the central bank said.

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