Explainer: What Beijing’s New Crackdown Means for Crypto in China

Representations of the Ripple, bitcoin, etherum, and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, on Feb. 14, 2018. Dado Ruvic/Reuters

SHANGHAI—Chinese regulators have tightened restrictions that ban financial institutions and payment companies from providing services related to cryptocurrencies, marking a fresh crackdown on digital money.

Compared with a previous ban issued in 2017, the new rules greatly expanded the scope of prohibited services, and judged that “virtual currencies are not supported by any real value.”

What Are the New Measures?

Three financial industry associations on Tuesday directed their members, which include banks and online payment firms, to not offer any crypto-related services, such as account openings, registration, trading, clearing, settlement, and insurance, reiterating the 2017 ban.