The People’s Bank of China (PBoC) has promised to put a spell on companies engaged in cryptocurrency trading activities
The People’s Bank of China branch in Shenzhen is stepping up efforts to crack down on cryptocurrency trading activities in the region. The central bank said it has a duty to ensure that companies don’t trade in cryptocurrencies.
According to a local report yesterday, the PBoC Shenzhen office closed 11 companies for allegedly involved in cryptocurrency trading and financial activities. The report indicated that late last month the bank had compiled a list of 46 companies it suspects were illegally trading cryptocurrencies.
The PBoC conducted further investigations against these companies and shut down 11 of them for engaging in illegal cryptocurrency trading activities. The bank indicated that these efforts would continue particularly in the second half of the year.
The People’s Bank of China has cracked down on cryptocurrency trading activity in the country over the past few years. The government has banned banks and other financial institutions from transacting with cryptocurrency exchanges and corporations, making it virtually impossible for cryptocurrency exchanges to operate in China.
The PBoC said in a meeting a few weeks ago that it needs to step up its efforts to ensure that Chinese companies are not engaging in cryptocurrency trading activities. Companies that trade crypto risk being shut down by the authorities.
China’s attacks on cryptocurrencies are nothing new. In recent years, Chinese authorities have banned Initial Coin Offerings (ICOs), cryptocurrency exchanges, and other crypto-related events in the region.
Authorities went a step further to make cryptocurrency mining farms nearly impossible to operate in China. The government cut power to the farms, effectively pushing the cryptocurrency mining companies to other countries such as Kazakhstan, the United States, Russia, and others. With these renewed efforts, it becomes even more difficult for companies in China to trade in cryptocurrencies or hold cryptos as investments.