The People’s Bank of China’s Shenzhen Center Branch announced the closure of 11 businesses accused of engaging in virtual currency trading. The central bank of Shenzhen province issued a notification for the 11 enterprises implicated to rectify and clean up their acts.
According to local sources, the Chinese Central Bank’s Shenzhen branch had compiled a list of 46 enterprises suspected of unlawful virtual currency trading by the end of July. The Shenzhen branch established a special task force to detect and remedy businesses implicated in unlawful virtual currency trafficking. The branch has finished the rectification of a well-known domestic financial website that was found to be in violation of foreign exchange deposit trading regulations. According to the 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.”
In a recent conference, the Chinese Central Bank stated that it would continue its crackdown on digital assets throughout the second half of the year.
China to Continue Cryptocurrency Crackdown
China began enforcing severe crypto crackdown rules in May, beginning with the abolition of Bitcoin mining. China accounted for more than 60% of Bitcoin mining hash power at the time, as the majority of mining rigs were based in the nation. The Central Bank cited environmental concerns as well as carbon emission reduction targets as justification for the crackdown. The authorities stepped up their assault on cryptocurrency trading and began banning companies believed to be engaged.
Chinese repression is not new, and no bull market would be complete without one. In 2017, the country banned all cryptocurrency exchanges, and in 2013, it prohibited the usage of cryptocurrencies entirely. The Chinese crackdown is frequently followed by the bull run’s second leg, which has historically been more significant than the first.
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