China’s regulatory authorities have banned financial and payment institutions from providing services related to cryptocurrency transactions.

Authorities have also warned investors against the speculative trading in an attempt to clamp down on the rapidly evolving digital market.

“Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order,” China said in a statement

Although China has banned crypto exchanges and initial coin offerings, it has not prohibited individuals from holding cryptocurrencies. 

The statement added that institutions must not provide trust, saving or pledging services of cryptocurrency, nor use it to price products of services.