Femi is a freelance content writer with adequate experience creating content for online and offline media across different niches including technology. When he is not writing, you can find him trying out new technology or reading.
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.
People’s Bank of China Cracks Down on Coin Trading in ShenzhenOn Tuesday, Cnstock.com, a Chinese business news outlet revealed in a report, that the branch of China’s central bank in Shenzhen has begun cracking down on every form of illegal cryptocurrency trading. This new campaign of the PBOC is mainly focused on “rectifying” about 11 companies that have so far been caught up in the suspicion of carrying out illegal virtual currency activities.
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, eight more cases involving unlawful online foreign exchange operations and stock trading have also been investigated by the People’s Bank of China.
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 branch office of the Central Bank of China has also kick-started an enlightenment program aimed at helping consumers and even businesses to avoid violating existing financial regulations. This program will certainly help in financial risk prevention.
The branch has also come up with numerous teams of experts who will carry out door-to-door sensitization to over 3,000 companies in order to help them improve the way 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.
Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.