The People’s Bank of China (PBOC) in Shenzhen is reportedly cracking down on the illegal business activities of nearly a dozen companies who are still in one way or the other, involved in cryptocurrency dealings. According to the Chinese media, these businesses have been targeted in the crackdown solely because of crypto trading in the city.
In the article, a local financial website was also identified and accused of illegal display of foreign exchange cash deposit transactions by the regulator. In furtherance, the People’s Bank of China has investigated eight more cases involving unlawful online foreign exchange operations and stock trading.
So far, it is still unclear whether any of the targeted companies have been or will be allowed to continue with their other business activities that remain within the confines of the law. According to a recent tweet on the social media platform Twitter by a Chinese crypto-journalist Colin Wu, also known as ‘Wu Blockchain’, the PBOC has shut down the 11 firms suspected of carrying out illegal virtual currency activities.
Apart from the crackdown on crypto trading, the Central Bank of China branch office has also kick-started an enlightenment program aimed at helping consumers and even businesses avoid violating existing financial regulations. This program will certainly help in financial risk prevention.
The branch has also come up with numerous experts who will carry out door-to-door sensitization to over 3,000 companies to help them improve how they handle foreign currency matters.
The regulatory campaign in Shenzhen is in line with the presently ongoing offensive by the Beijing government against all forms of activities related to decentralized digital currencies across the country. It also coincides with efforts to bolster the use of the new national digital yuan currency, a CBDC issued by the People’s Bank of China.