The Shenzhen branch of the People’s Bank of China is taking actions on cryptocurrency-related activities considered illegal. According to a reports the branch has recently “cleaned up and rectified” 11 new companies suspected of engaging in illicit crypto trading.
The report did not disclose the companies’ names or the details of how they were sanctioned. The action against crypto firms was carried out alongside a slew of wide-ranging measures against illicit cross-border trading of foreign currencies and stocks, with one target reportedly being “a well-known domestic financial website that is suspected of publicizing illegal foreign exchange deposit transactions.”
Authorities have consistently taken a strict approach towards the cryptocurrency sector, in line with Beijing’s increasingly toughened stance over the years. Crypto has never been banned outright but the Chinese state has gradually increased restrictions on the industry since 2017. Over the past year, measures targeting crypto mining and trading have intensified.
While decentralized crypto currencies are likely to remain subject to municipal and regional crackdowns for the foreseeable future, since 2020, Shenzhen’s government has been liaising with the PBoC on promotional rollouts of China’s central bank digital currency .Last month, the city’s residents could already use the digital Yuan on public transport and use it to top up their travel cards.
