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Shenzhen clamps down on crypto trading firms

The local central bank branch has “cleaned up” the companies for providing illegal crypto trading activities, according to state-owned media reports.
The headquarter of Central Bank of China (similar to US Federal Reserve)

The Shenzhen branch of the People’s Bank of China (PBOC) has “cleansed and rectified” 11 newly established companies for involvement in illicit cryptocurrency trading, during a special campaign, China media reports.

The names of the companies were not disclosed, and it is unknown what specific actions were taken against them.

The central bank has also acted against a “locally renowned finance website” for violations in its promotion of foreign exchange deposits, and dealt with eight reports of illegal online forex and cross-border stock trading services, according to the same report.

The crackdown by the Shenzhen branch comes a couple of weeks after the central office of the PBOC vowed to keep high regulatory pressure on crypto trading during a meeting in early August.

China has been cracking down on bitcoin mining and trading as part of ongoing efforts to prevent speculative and financial risks.

In February, Shenzhen shut down eight companies involved in activities such as distributing wealth management products backed by bitcoin to domestic investors.

In May, the State Council announced a stricter ban on banks and payment companies offering crypto-related services.

Since then, some cryptocurrency exchanges and online communities for crypto traders have cancelled their business licenses and terminated their operations in China. China has banned crypto exchanges and initial coin offerings, but has not prohibited individual investors from holding cryptocurrencies

Part of the Mark Allen Group.