People’s Bank of China Targets Crypto Companies in Shenzhen Crackdown
The Shenzhen office of the People’s Bank of China (PBOC) has reportedly set out to correct the business activities of about a dozen companies allegedly engaged in cryptocurrency transactions. According to Chinese media, the entities have been targeted in a crackdown on crypto trading in the city.
People’s Bank of China Cracks Down on Coin Trading in Shenzhen
The branch of China’s central bank in Shenzhen is cracking down on illegal cryptocurrency trading, the Chinese business news outlet Cnstock.com revealed Tuesday. As part of the new campaign, the PBOC has “rectified” 11 companies “suspected of carrying out illegal virtual currency activities,” the report detailed.
According to the article, the regulator has also identified a local financial website accused of illegally advertising foreign exchange cash deposit transactions. Furthermore, the People’s Bank of China has investigated eight cases involving illicit online foreign exchange operations and cross-border stock trading.
It’s unclear whether the targeted entities have been allowed to continue with their other business activities. According to Chinese crypto journalist Colin Wu, also known as ‘Wu Blockchain’ on Twitter, the PBOC has shut down the 11 firms.
The Shenzhen branch of the Central Bank of China recently launched a special crackdown on illegal cryptocurrency trading activities and shut down 11 companies suspected of conducting illegal virtual currency activities.
— Wu Blockchain (@WuBlockchain) August 17, 2021
Besides the crypto trading crackdown, the regional office of the Chinese central bank has also embarked on a mission to help consumers and businesses avoid violations of current financial regulations. The initiative includes an educational program devoted to financial risk prevention. The branch has organized teams of experts who will provide door-to-door services to over 3,000 companies in order 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 yuan currency, a CBDC issued by the People’s Bank of China.
In May, the State Council, the executive power in China, vowed to turn its attention to cryptocurrency mining and digital asset trading as part of its push to establish control over financial risks and reach its long-term environmental goals. This year, Chinese central authorities reiterated previous warnings regarding the crypto industry.
Do you think the People’s Bank of China will expand its crackdown on crypto activities in Shenzhen? Share your expectations in the comments section below.