PBoC shuts down 11 companies involved in crypto trading
The People’s Bank of China (PBoC) has promised to turn the heat on companies engaging in cryptocurrency trading activities
The Shenzhen branch of the People’s Bank of China is increasing its efforts to crack down on cryptocurrency trading activities in the region. The central bank said it is committed to ensuring that corporate entities don’t engage in cryptocurrency trading.
According to a local report yesterday, the PBoC Shenzhen branch has shut down 11 companies for allegedly being involved in cryptocurrency trading and financial activities. The report pointed out that the bank had compiled a list of 46 companies it suspects are engaging in illegal trading of cryptocurrencies towards the end of last month.
The PBoC went on to conduct further investigations into these companies and shut down 11 of them for participating in illegal cryptocurrency trading activities. The bank pointed out that these efforts would continue, especially in the second half of the year.
The People’s Bank of China has cracked down on cryptocurrency trading activities in the country over the past few years. The government has banned banks and other financial institutions from conducting transactions with cryptocurrency exchanges and companies, hence making it virtually impossible for cryptocurrency exchanges to operate in China.
The PBoC, in a meeting a few weeks ago, said it needs to intensify its efforts to ensure that Chinese companies don’t engage in cryptocurrency trading activities. Companies that engage in crypto trading risk being shut down by the authorities.
China’s attacks on cryptocurrencies are nothing new. Over the past few years, the Chinese authorities have banned initial coin offerings (ICOs), cryptocurrency exchanges and other crypto-related events in the area.
The authorities went a step further to make it almost impossible for cryptocurrency mining farms to operate in China. The government cut off the power supply to the farms, effectively driving the cryptocurrency mining companies to other countries like Kazakhstan, the United States, Russia and others. With these renewed efforts, it will be even tougher for corporate entities in China to engage in cryptocurrency trading or hold cryptos as investments.