The People’s Bank of China urged other banks and payment firms to crack down harder on cryptocurrency trading.

The Chinese authorities in recent times have been hard on digital currencies which has sent the cryptocurrencies tumbling down.

The PBC’s statement sent the Bitcoin to a two-week low and ether to a more than a five-week low. 

The prices, however, have been stabilized on Tuesday.

The PBC’s statement came after a meeting with banks and payment firms in which it urged them to thoroughly check client accounts, identify those involved in cryptocurrency transactions, and promptly cut their payment channels.

The latest tightening makes it far more difficult for individuals in China to trade cryptocurrencies, even through channels that have avoided previous restrictions.

"The law hasn't changed, it's just the enforcement," said Bobby Lee, founder, and CEO of Ballet, a cryptocurrency wallet app, and formerly CEO of BTC China, China's first bitcoin exchange.

The PBC statement also effectively cuts off payment channels through which mainland Chinese traders have acquired cryptocurrencies to trade offshore.