While the use of cryptocurrencies continues to gain attention, it is facing resistance from many governments. Banks in different parts of the world have their reservations about the use of cryptocurrencies. Some countries have even banned cryptocurrency-related transactions in commercial banks. This has been going on for several years. Now, there are reports that CITIC bank of China has blocked all cryptocurrency transactions.
Some legislatures believe that cryptocurrency is a threat to any nation’s legal currency status. In other to protect its legal currency status, and prevent money laundering risks, the People’s Bank of China, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission jointly issued a “Notice on Preventing Bitcoin Risks” many years ago. The notice claims that Bitcoin has the same status as its legal currency. They also with the notice prohibits the use of cryptocurrencies in the market.
Later (at the end of 2013 / 2014), 13 banks successively announced the prohibition of Bitcoin transactions using their accounts. Furthermore, CITIC Bank of China has now announced that Bitcoin-related transactions are prohibited.
In order to protect the property rights of the public, maintain the legal currency status of RMB, and prevent money laundering risks, from now on, no institution or individual may use the bank account for Bitcoin, Litecoin, etc. Any transaction related to withdrawal, purchase and sales are not allowed through our bank account. Once discovered, the bank has the right to take measures such as suspending relevant account transactions and canceling relevant accounts.
Not all banks reject cryptocurrency transactions
In addition, the offshore banking industry is also rejecting cryptocurrency transactions. According to reports, HSBC Holdings no longer accept any transactions that have links to cryptocurrencies.
Of course, not all institutions and banks stand on the opposite side of cryptocurrencies. For example, many asset management companies such as Morgan Stanley and JP Morgan Chase also announced in March this year that they would provide Bitcoin fund services to their management clients. The Bank of New York Mellon does not prohibit cryptocurrency transactions in the U.S.
China CITIC Bank is the largest subsidiary of CITIC Group, formerly known as CITIC Industrial Bank. Founded in 1987, it is the seventh-largest bank in Mainland China with total assets of over HK$1.2 trillion and more than 16,000 employees. The bank also has over 540 branches globally. It is also one of the six banks and three guarantees of Hong Kong’s Chinese financial stocks.