The Shenzhen office of the People’s Bank of China (PBOC) has reportedly set out to rectify the business activities of about a dozen companies allegedly involved in cryptocurrency transactions. According to Chinese media, the companies were targeted in a crackdown on crypto trading in the city.
People’s Bank of China cracks down on the coin trade in Shenzhen
The branch of the Chinese central bank in Shenzhen is taking action against the illegal trade in cryptocurrencies, said the Chinese business news agency Cnstock.com on Tuesday. As part of the new campaign, the PBOC “corrected” 11 companies that “are suspected of engaging in illegal activities in virtual currencies,” the report explains in detail.
According to the article, the regulator has also identified a local financial website accused of illegally promoting foreign currency cash transactions. In addition, the People’s Bank of China has investigated eight cases involving illegal online currency trading and cross-border stock trading.
It is unclear whether the affected companies were allowed to continue their other business activities. According to the Chinese crypto journalist Colin Wu, also known as “Wu Blockchain” on Twitter, the PBOC has closed the 11 companies.
The Central Bank of China branch in Shenzhen recently launched a crackdown on illegal cryptocurrency trading activities, closing 11 companies suspected of engaging in illegal virtual currency activity.
– Wu-Blockchain (@WuBlockchain) 17th August 2021
In addition to cracking down on crypto trading, the regional office of the Central Bank of China has also launched a mission to help consumers and businesses avoid violating applicable financial regulations. The initiative includes an educational program for the prevention of financial risks. The office has organized teams of experts who provide door-to-door services to over 3,000 companies to improve their handling of foreign currency matters.
The regulatory campaign in Shenzhen comes amid an ongoing offensive by the Beijing government against activities related to decentralized digital currencies across the country. It also coincides with efforts to promote the use of the new national digital currency, the yuan, a CBDC issued by the People’s Bank of China.
In May, the State Council promised the executive branch in China to turn its attention to cryptocurrency mining and digital asset trading in order to gain control over financial risk and meet its long-term environmental goals. This year, China’s central authorities reiterated previous warnings regarding the crypto industry.
Do you think the People’s Bank of China will step up its crackdown on crypto activity in Shenzhen? Do share your expectations in the comments section below.
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