China’s biggest bank, the Industrial and Commercial Bank of China Ltd (ICBC, 中國工商銀行), yesterday said it has banned activities related to trading in bitcoin, joining at least 10 other Chinese banks participating in a government crackdown on virtual currencies.
Bitcoin, invented in the wake of the global financial crisis by a computer guru, is a form of cryptography-based e-money that can be stored either virtually or on a user’s hard drive, and offers a largely anonymous payment system.
Speculators drove China’s bitcoin prices into the financial stratosphere last year, peaking at 7,588.88 yuan (US$1,224 at current exchange rates) in November, before they crashed following moves by exchanges, financial institutions and the government to rein in the virtual currency.
“From this date, any institution or individual must not use accounts set up with our bank for the deposit and withdrawal ... and transfer of funds for Bitcoin and Litecoin trading,” ICBC said in a statement on its Web site.
Litecoin is another virtual currency.
The move aimed to “protect the property rights and interests of the public, prevent money laundering risks as well as to safeguard the status of the renminbi as the legal currency,” ICBC said, referring to the yuan.
ICBC threatened to suspend and close bank accounts if clients failed to comply with the new rules.
Earlier this week, China’s main bitcoin exchanges pledged to practice “self discipline” including tracking suspicious trading and preventing money laundering.
Five markets, including China’s largest BTC China, said they would halt risky activities such as margin trading and short-selling, and make regular reports to the government, according to a joint statement posted on Tuesday.
In its annual financial stability report released late last month, China’s central bank labelled bitcoin “a tool for speculation” and warned against risks the e-money could pose to capital flows as well as its possible use in illegal activities including drug dealing and money laundering.
Last month, the central bank instructed banks and third-party payment providers to “completely cut off the capital chain” for bitcoin trading, the Southern Metropolis Daily reported.
The central bank has so far made no public statement to confirm the action, but at least 11 banks have ceased providing services related to bitcoin.
The moves have hurt the value of bitcoin in China. Yesterday afternoon, bitcoin was trading at 2,781.97 yuan each on BTC China, down 11 percent from April 25 when banks began announcing the bans.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors