August 18, 2021

China Has Not Stopped: The Company Sector Begins To Be Targeted By The Authorities!

 The Central Bank of China in its latest report has announced the closure of 11 companies suspected of engaging in cryptocurrency trading. The Shenzhen branch of China's Central Bank issued the notice to close the 11 companies involved for further investigation.

Local reports informed that the Central Bank of China’s Shenzhen branch had listed 46 companies suspected of being involved in crypto asset trading at the end of July. A special task force of the Shenzhen branch was set up to identify and review companies found in the trading of kritpo assets.

In one of the statements, the Shenzhen branch informed that the special task force aims to conduct special monitoring of illegal crypto asset trading activities, conduct cleanups and repairs suspected of carrying out crypto asset activities.

The Central Bank of China in a recent conference has mentioned that it will continue its crackdown on crypto assets in the second half of this year as well.

China embarked on a strict crypto prevention policy in May beginning with a ban on Bitcoin mining. At the time China accounted for more than 60% of Bitcoin mining hashes before most companies moved bitcoin mining sites.

The Central Bank of China cited the environment as the main reason behind the drastic action. The move did not stop there with the authorities launching crypto follow -up measures against the trading of crypto assets and banning companies found to be involved.

Violence from China is not a new thing. In 2017, China banned all crypto exchanges in the country while in 2013 it banned the use of crypto assets altogether.