Government officials in Shenzhen have signaled a crackdown on illicit cryptocurrency activities and claim that they’ve identified at least 39 entities violating China’s ban on cryptocurrency trading, Sanyan Finance reported today. The announcement comes as The People’s Bank of China has confirmed it is intensifying efforts to combat digital currency transactions in the country.
The Shenzhen action reportedly focuses on three main areas of concern: cryptocurrency exchanges in China, entities providing channels for overseas digital currency trading, and entities that “sell tokens in various names, raise funds for investors or virtual currencies such as Bitcoin and Ethereum.”
The nation’s central bank issued a statement explaining why authorities have been intensifying scrutiny of the industry. According to the PBOC, speculative activities involving cryptocurrency have been on the rise since the nation’s leadership began promoting blockchain technology. The bank vowed to continue to monitor digital currency activities and respond swiftly to any violations of its ban:
Once it is discovered, it will be disposed of immediately, and it will be prevented from happening early. Investors should be careful not to mix blockchain technology with virtual currency.
The bank encouraged investors to be cautious and to report any activities involving cryptocurrency businesses, trading services, or initial coin offerings.