Cryptocurrencies

People’s Bank of China to ‘clean up’ crypto trading in Shenzhen

The Shenzhen subsidiary of the People’s Bank of China said it intends to “promptly clean up and rectify” 11 companies for providing illicit crypto trading activities.

The central bank is determined to keep the pressure on the crypto trading industry after recently completing what it described as ‘the rectification’ of a “well-known domestic financial website”.

Chinese authorities started a crackdown on crypto mining in May, under the directive of the State Council “by giving foreign exchange deposits and dealing with eight reports of online forex and cross-border stock trading services”.

Suspected illegal practice

A report stated that, by the end of July, the Shenzhen Central sub-branch of the People’s Bank of China had formulated a list of suspicious activities that were suspected to be illegal.

“As of August 8, a total of 89,381 companies had been visited, and 20,664 companies had obtained credits of 52.379 billion yuan,” the report said.

“Special financial support activity for the development of individual industrial and commercial households with the aid of ‘loan for small businesses and serve the people’s livelihood’ was launched.”

It added that 3.249 billion yuan of credit had been granted to 1,888 individual industrial and commercial households.

“Rectification” is the term often used in China to mean the government is trying to make companies act in regular terms and has been widely used in the past year’s crackdown on tech companies, notably in the case of the Ant Group.

The dual listing of Alibaba’s Ant Group on the Hong Kong and Shanghai Stock Exchanges was scheduled to take place via STAR in November last year, but the Chinese government abruptly halted Ant’s $37 billion stock debut two days before the initial public offering (IPO) due to regulatory scrutiny of the online wealth management and banking platform.

Teuta Franjkovic

Starting out as a staff writer with Cosmopolitan, Teuta has risen through the ranks of business journalism, editing daily newspapers and websites in the IT and economics industries. With a passion for creating opportunities and bringing people together, Teuta turned her attention to the world of crypto and blockchain. She holds a double MA in Public Politics and Entrepreneurship.

Disqus Comments Loading...

Recent Posts

Here is why Bitcoin is still a lucrative investment in 2024

Those who enter the market at this time may be surprised to hear that Bitcoin…

3 hours ago

Zircuit Launches ZRC Token: Pioneering the Next Era of Decentralized Finance

George Town, Grand Cayman, 22nd November 2024, Chainwire

11 hours ago

The surge of Bitcoin NFTs: Everything you should know about Bitcoin ordinals

From digital art to real-estate assets, NFTs have become a significant attraction for investors who…

1 month ago

MEXC Partners with Aptos to Launch Events Featuring a 1.5 Million USDT Prize Pool

Singapore, Singapore, 21st October 2024, Chainwire

1 month ago