China’s crypto crackdown continues as the Shenzhen branch shuts down 11 out of the 46 companies suspected of illegal cryptocurrency trading. Companies that continue to trade or mine cryptocurrencies risk facing significant fines and prison time.
Despite this, a handful of businesses continue to trade in cryptocurrencies, with reports claiming that 46 businesses are involved in illegal cryptocurrency trading.
According to a statement made by the PBoC’s Shenzhen branch, 46 companies are suspected of being involved in illegal crypto trading, with 11 being shut down as a result of the bank’s special task force’s ongoing investigation. The results of the special task force were announced by the bank in an official notification:
“Carry out special rectification of illegal virtual currency trading activities, and promptly clean up and rectify 11 newly emerging companies suspected of carrying out illegal virtual currency activities. Completed the rectification of a well-known domestic financial website that was suspected of propagating violations of foreign exchange deposit trading, and properly handled 8 reports of illegal and criminal activities related to online foreign exchange and cross-border stock trading.”
The Chinese government’s ongoing crypto crackdown has intensified, seemingly in response to the recent Bitcoin rise and greater global acceptance of digital currencies.
Despite increased regulatory monitoring in China, Chinese investors have continued to participate in the cryptocurrency market through foreign exchanges.
Crypto mining firms such as Huobi and Binance, for example, have shifted offshore to dodge governmental attention. Black Rock Petroleum Company has reached an agreement that will see up to one million Chinese mining rigs relocated to three natural gas-producing sites in Alberta.
While China appears to tighten its crypto regulations “at least once in a bull cycle,” as the Hong Kong Bitcoin Association pointed out in a tweet, limitations this year have practically outlawed any involvement in Bitcoin, including the use of foreign exchanges to trade crypto.
The PBoC’s recent announcement demonstrates the bank’s commitment to investigating and punishing businesses that refuse to comply with current regulations.
