Dogecoin doubled and Coinbase has not yet dissipated, and the ban on Bitcoin has come.
On May 7, CITIC Bank "blocked" Bitcoin and banned accounts from using Bitcoin transactions to flood the screen, which instantly sparked heated discussion.
htmlOn May 8, a reporter from China Securities Journal called CITIC Bank outlets about the ban and received a response: Based on the requirements of national policies, virtual currency cannot be circulated and used, so transactions are not allowed. Once the bank’s backend monitoring system discovers the details of relevant transaction items, the account will be in a regulatory state and will affect normal use.CITIC Bank prohibits accounts from being used for Bitcoin transactions
Recently, the official website of CITIC Bank issued an announcement stating that no institution or individual may use CITIC Bank account for recharge and withdrawal of transaction funds of Bitcoin, Litecoin , etc., and may not transfer related transaction funds through CITIC Bank account. Once discovered, CITIC Bank has the right to take measures such as suspending relevant account transactions and canceling relevant accounts.
Image source: CITIC Bank
On May 7, "CITIC Bank prohibits accounts from being used for Bitcoin transactions" was on the Sina Weibo hot search list, which aroused heated discussion among netizens.
Image source: Weibo
Some cryptocurrency speculators lamented that "Bitcoin is a scam, it is banned well"; some cryptocurrencies exclaimed, "Run quickly, it has a great impact, it will be a mine disaster."
On May 8, a banking industry insider told a reporter from China Securities Journal: "At this stage, various financial institutions and payment institutions shall not price Bitcoin as products or services, shall not buy or sell Bitcoin, shall not underwrite insurance business related to Bitcoin or include Bitcoin in the scope of insurance liability, and shall not directly or indirectly provide customers with other Bitcoin-related services, etc. The bank's move is determined according to policy requirements."
Regarding how to monitor account transactions, the above-mentioned banking industry insider said that banks will focus on monitoring single large-scale transactions , and once discovered, they may be marked as a "suspicious account." When an account is defined to be associated with Bitcoin transactions, its associated accounts are marked and focused on monitoring.
More than one bank said "no" to Bitcoin transactions
This is not the first domestic bank to "block" Bitcoin. The last time a bank institution "blocked" Bitcoin was in 2014.
Following the , CSRC and five other ministries and commissions issued Notice on preventing Bitcoin risks at the end of 2013, requiring all financial institutions and payment institutions not to carry out Bitcoin-related business, in April 2014, 13 banks including China Merchants Bank, China Huaxia Bank, China Construction Bank, Bank of China, Everbright Bank , Ping An Bank , Agricultural Bank of China, Pudong Development Bank , Guangfa Bank , Industrial Bank , Industrial and Commercial Bank of China, Bank of Communications and Minsheng Bank , 13 banks including 13 banks announced the ban on Bitcoin transactions in just two weeks. Subsequently, Alipay also issued an announcement banning Bitcoin and other transactions, all of which were "protecting the property rights and interests of the public and preventing the risks of money laundering."
Image source: Bank of China
At that time, a banking industry insider told reporters that this move was to respond to the regulatory requirements of the central bank and implement the regulatory policies for Bitcoin issued by the central bank and five other ministries and commissions.
After many years, CITIC Bank has issued a ban on Bitcoin, which may have hidden mystery. Industry insiders estimate that domestic banking institutions will likely follow suit and set off a new wave of "encirclement" Bitcoin.
Regarding whether other banks will follow up and issue bans in the future, a banking industry insider told a reporter from China Securities Journal that the pace of each bank is different. It is not certain whether other banks will issue announcements in the future. It needs to be determined based on the bank's own situation. If no new policies appear, they will continue to be implemented in accordance with the existing policies issued in 2013, which means that bank accounts cannot be used for Bitcoin transactions.
On the evening of April 18, 2021, Li Bo, deputy governor of People's Bank of China, said at the Boao Forum on Asia that many countries, including my country, are studying regulatory rules for crypto assets to ensure that cryptocurrency assets do not cause serious financial risks.
He also emphasized that crypto assets themselves are not currency, but alternative investment products. The main role that crypto assets should play in the future is to act as an investment vehicle or an alternative investment vehicle. Many countries, including China, are also studying what kind of regulatory environment should such investment products be in. "Until we find out what kind of regulatory rules are needed, we will continue to maintain our current measures and practices."
Is the bull market of Bitcoin over?
Since the end of last year, Bitcoin has started a magnificent bull market. With negation and controversy, it fluctuated and reached new highs all the way.
htmlOn May 7, the ban crisis continued to ferment. As of press time, the price of Bitcoin was still strong, temporarily posting US$58,457, with the 24-hour increase of to 1.5%. The short sellers who played the contract did not expect that the price of Bitcoin had not been affected and took a sharp turn for the worse. UAlCoin data shows that the virtual currency contract has a total liquidation of more than 6 billion yuan in one day, and the largest single short liquidation is as high as 33.55 million yuan.Data source: OKEx
Data source: UAlCoin
On April 22, the night the CITIC Bank issued the ban, the price of Bitcoin suddenly plummeted, and once plummeted by more than $5,000, hitting $50,000. A senior investor recalled the Bitcoin market on April 22, saying: "The Bitcoin market was indeed abnormal that day, and it was in the stage of a daily-level pullback. The time when CITIC Bank issued the statement happened to meet the moment of the big avalanche."
He also said that at present, the negative market impact of the ban on CITIC has basically been digested, and the big pullback before May Day has already explained everything. I believe no bank or institution can stop Bitcoin’s continuous breakthroughs and end this bull market. However, as the market enters the second half of the bull market, risks grow exponentially. Every large drawdown may lead to tens of billions of liquidated positions, so be careful.
William, chief researcher at the OKEx Research Institute, a well-known digital asset trading platform, pointed out that Bitcoin is a high-risk asset, not a safe-haven asset. Moreover, as a special asset class, Bitcoin, unlike stocks or bonds, does not generate any expected cash flow . The only way for investors to get returns is the rise in Bitcoin prices, which makes it easier to form speculative bubbles.
