Three state-backed financial groups in China have released a joint statement in which they come together to warn about the use of cryptocurrencies as payment. Their reasoning behind the warning includes the high risk of volatility in the value of cryptocurrencies. The groups remind industry players that cryptocurrencies are not accepted in any Chinese financial activities, and to bear that fact in mind when considering options. The three groups included in the joint advisory are the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China.

The statement also claims that its members should not be involved in transactions dealing with cryptocurrencies, including those encompassing intermediary services that facilitate trading and the exchange of fiat money. The three groups represent online companies that provide financial services, local banks, and payment companies. The joint warning comes just after Elon Musk made an announcement via Twitter about the negative environmental effects of mining Bitcoin that caused the crypto currency’s price to plummet. Musk’s company, Tesla, halted the use of the cryptocurrency following the announcement. The Chinese entities stated that cryptocurrencies contain financial risks and potential ties to money laundering and were not recognized by China’s central bank.

Read More: China reiterates warning against cryptocurrency use in transactions