China’s Tech Hub Shenzhen Kicks off Cleanup of Crypto-Related Companies
China has recently renewed its hard-line approach to cryptocurrency trading and crypto exchanges, with the People’s Bank of China (PBoC) announcing that any crypto-related activities discovered would be “disposed of immediately”.
After China’s President Xi Jinping made a public endorsement of
blockchain technology this October, the country’s official media has been cautioning the public to remain “rational” to the crypto speculation and lashing at those frauds or speculation under the name of blockchain.
According to PBoC’s Bluebook on Blockchain, only 4,000 out of the 28,000 blockchain enterprises based in the country are engaged in pure blockchain technology, while as many as 25,000 have tried to issue their own cryptocurrency or
token via illegal fundraising or financial fraud.
In response to Beijing’s rigid anti-crypto stance, local governments at all levels have been intensifying the clampdown on crypto-related activities with new regulations rolled out.
Following financial hub Shanghai and capital Beijing’s move to investigate local cryptocurrency marketplace, the country’s tech capital Shenzhen also issued a warning against illegal activities involving cryptocurrency last month.
In the latest development, Shenzhen Financial Regulatory Bureau, local financial regulator directly under the government, announced that local law enforcement has already identified 39 enterprises suspected of conducting illegal crypto activities and a cleanup would kick off soon. Eight enterprises have already been under inquiry at the Dec.18 rectification meeting held by the bureau along with other 10 local regulatory organs, of which two companies are suspected of involving in crypto trading service and the other six are associated with initial coin offering (ICO) with their cryptocurrencies being KAN, VSC, HOB, BST, MCC.