CME Group has issued a notice regarding the recent ban on crypto activities in China.
CME notes that regulators in the People’s Republic of China (PRC) recently prohibited all cryptocurrency activities for PRC residents, including trading of derivatives on cryptocurrencies. The relevant announcement by the People’s Bank of China and other regulators can be read here.
“Chicago Mercantile Exchange Inc. (“CME”) reminds all market participants that they are required to abide by local regulations with respect to trading in CME products referencing cryptocurrencies, including any restrictions imposed by a market participant’s home jurisdiction”.
The People’s Bank of China has prohibited financial institutions and non-bank payment institutions from providing services including account opening, funds transfers, and clearing and settlement for virtual currency-related activities, or incorporating virtual currencies into the scopes of collateral or pledges, or providing virtual currency-related insurance services, or incorporating virtual currencies into insurance coverage.
Under the new rules, Internet companies must not provide online business premises and commercial display, marketing, advertising, paid traffic or other services for virtual currency-related activities.
Based on clues forwarded by financial regulatory authorities, the cyberspace and telecommunications authorities will promptly shut down the websites, mobile applications, mini programs and other internet applications used for virtual currency-related activities in accordance with the law.
Upon discovering a clue to any virtual currency-related illegal financial activities, local financial regulatory authorities will, in cooperation with the branches of the financial regulatory authorities under the State Council as well as other authorities, promptly investigate, identify, and properly resolve the case in accordance with the law, and rigorously hold relevant legal persons, unincorporated organizations, and natural persons legally liable.