The People’s Bank of China’s branch 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 report, the PBoC has also identified a local financial website accused of illegally advertising foreign exchange cash deposit transactions.
People’s Bank of China investigates firms dealing in cryptocurrencies.
The People’s Bank of China has investigated eight cases involving illicit online foreign exchange operations and cross-border stock trading. As of now, 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. Besides the crypto trading crackdown, the regional office of the PBoC 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 central bank’s branch has organized teams of experts.
The People’s Bank of China’s branch has organized teams of experts who will 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 yuan currency, a CBDC issued by the People’s Bank of China. Earlier, China vowed to turn its attention to cryptocurrency mining and crypto trading as part of its push to establish control over financial risks and reach its long-term environmental goals.