Chinese Central Bank Branch in Shenzhen Shuts Down 11 Illegal Crypto Firms

Chinese Central Bank Branch in Shenzhen Shuts Down 11 Illegal Crypto Firms

August 18, 2021

The People’s Bank of China (PBoC) Shenzhen Branch launched a crackdown operation targeting 11 cryptocurrency-related companies suspected of engaging in alleged illegal activities. According to Global Times, the firms are accused of arranging illicit crypto transactions. Among the scrutinized businesses, one “well-known financial website” is suspected of illegally advertising forex transactions.

Furthermore, Shenzhen’s PBoC branch has reported eight cases of online forex speculation and stock trading violations per local laws. In parallel, the central bank has deployed an educational campaign to teach investors about risk prevention. “It is reported that as of the end of July, the Shenzhen Central Sub-branch of the People’s Bank of China has formulated a list of 46 ‘I do practical things for the masses’ practical activities, insisting on focusing on the ‘emergency and worrying’ issues of the masses and making precise efforts,” Weixin, a local media outlet, reported.

That said, over 3,000 companies have been visited by specialists of the central bank to teach them how to handle all matters concerning foreign exchange transactions legally.

Recent Crypto Crackdowns in China

Last month, in Beijing, an office of China’s central bank issued an order for Beijing Qudao Cultural Development Co Ltd, a software maker, to suspend its operations over suspicions of being involved in crypto-related trading. The bureau pointed out that companies in the city should not be venues for conducting any cryptocurrency-related businesses.

As crypto crackdowns in China keep strengthening, companies like Bitmain, one of the world’s largest Bitcoin (BTC) mining hardware manufacturers, halted the sales of its machines for delivery globally. Domestic miners had to flee the country to seek other territories to keep running their operations, such as United States, Canada, Australia, Russia, Belarus, Sweden, Norway, Kazakhstan, Angola, Congo, and Indonesia, as Finance Magnates reported.

IBC Group also announced in July that it had decided to shut down its Bitcoin and Ethereum (ETH) mining operations.

Source: Read Full Article