The government of China released a joint statement of the industry bodies that provides for a ban on doing business in cryptocurrency. The ban incorporates services relating to crypto transactions namely, registration, trading, clearing and settlement, pledging, issuing of financial products related to cryptocurrency, etc. rendered by financial institutions and online payment channels.
The statement mentions that “virtual currency is not supported by real value”, their prices are easily manipulated, and such trading contracts are not protected by Chinese law. However, the ban does not extend to the individual holding the virtual currency. Hence, only exchange and initial coin offerings are barred but not individual holding.