A document issued by the authorities in Beijing will prohibit payment service providers from facilitating transactions related to cryptocurrencies, among other stipulations, although the veracity of the same has not yet been confirmed.

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State media reports in China on January 19, 2018 indicate that a circular titled "Notice about self-examination and rectification of payment services for illegal transactions of virtual currencies" was published online.

Specifically treated in the circular are regulatory requirements that banks must follow; The memo stressed that it is prohibited for banks to offer commercial services related to cryptocurrencies and that direct payment channels stop facilitating such transactions.

It also demanded an increase in daily monitoring efforts, so that banks can detect transactions related to cryptocurrencies; if found, the banks are directed to close those channels.

The sources say that an unidentified staff member in the People's Bank of China (PBoC) has confirmed the legitimacy of the document, even though it did not appear on the official PBoC site.

Instead, the document was disclosed by the Central Bank Administration Department, equivalent to a PBoC branch in Beijing, and, as such, the regulatory requirements are limited to that district.

However, it is expected that the research efforts will extend beyond the branches located in the capital.

According to local sources, banks are also expected to participate in self-examination and rectification audits of their transaction records to identify operations related to cryptocurrencies.

By January 20, banks that fall within the jurisdiction of the circulated note are expected to provide reports on the measures they have taken to ensure compliance with an administrative authority.