Financial Officials in Shenzhen Promise to Prevent Further Crypto Hazards
- The People’s Bank of China issued a statement on Thursday cautioning investors about cryptocurrency fraud in response to the warning from the three financial institutions in Shenzhen.
- Chinese investors have come up with inventive ways to get around the local ban on cryptocurrency.
- Crypto businesses and mining farms began withdrawing from China last September due to a strict crackdown on the industry.
Shenzhen’s financial regulators have vowed to prevent any further risks associated with trading cryptocurrencies while also warning that such businesses are illegal in mainland China. These three regulatory bodies said they would work together to monitor and crack down on any illegal activity related to cryptocurrencies.
This comes as a bit of a surprise, as Shenzhen is often seen as a more liberal and permissive city when compared to the rest of mainland China. However, it appears that the government is taking a harder line on cryptocurrencies due to their volatile nature and the potential for money laundering and other criminal activities.
It remains to be seen how effective these measures will be in curbing cryptocurrency trading in Shenzhen, but it is clear that the government is taking steps to crack down on this burgeoning industry.
According to a statement jointly released by three Chinese departments, including the public security bureau and the central bank, personnel of cryptocurrency exchanges or organizations that promote, intermediate, and provide technical support to cryptocurrency trading overseas may face criminal risks in China.
The Crackdown on Cryptocurrencies in China
In September 2021, China began cracking down on cryptocurrency-related businesses and mining farms. This caused many of these businesses to withdraw from China. The crackdown was one of the world’s most stringent, and it has had a major impact on the crypto industry.
Mining farms were hit particularly hard by the crackdown. Many have had to shut down or move elsewhere, which had a ripple effect on the industry. In addition to the direct impact on businesses, the crackdown has made it difficult for Chinese investors to get involved in the crypto market.
The Chinese government’s crackdown on cryptocurrency is having a major impact on the global industry. Businesses are being forced to leave China, and investors are struggling to get access to the market. The long-term effects of this crackdown are still unknown, but it is clear that it will have a significant impact on the future of cryptocurrency.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
