China: Risk Warning on Preventing Virtual Currency Trading Activities

The Risk Warning on Preventing Virtual Currency Trading Activities is announced by the People's Bank of China on 6 July 2021. China's central bank warns organisations under its jurisdiction to support business premises, marketing and publicity or other services for virtual currency-related business activities. Additionally, financial institutions and payment institutions under the jurisdiction shall not provide virtual currency-related services directly or indirectly for their customers. Finally, the People's Bank of China aims to remind consumers that they should enhance their risk awareness and establish a correct investment concept, which avoids speculative virtual currency trading activities, so the statement of the central bank. The PBOC's warning is an effort to implement the decision of the Central Party Committee and the State Council on combating virtual currency trading and intending to prevent and control the risk of speculation in virtual currency trading and protect people's property security.