Crypto-Linked Firms in Shenzhen Latest Target of Chinese Central Bank

Crypto-Linked Firms in Shenzhen Latest Target of Chinese Central Bank

The Chinese central bank strikes again, this time targeting crypto-linked firms in the southeastern city of Shenzhen.

The Shenzhen branch of the Chinese central bank called for nearly a dozen businesses to ‘rectify’ illegal activities related to cryptocurrencies. The move points towards a continuation of the intense crackdown on outside digital assets

This move falls in line with a new project started by the People’s Bank of China’s (PBOC) Shenzhen branch. Called a ‘rectification project’ the goal is to target illegal trading of digital currencies. Thus far the project “cleaned up” 11 companies said to have been involved in such activities, according to Shanghai Securities News. The companies remained unnamed. 

Over this last year, the Chinese government launched a new campaign against cryptocurrencies. The targets include miners, crypto banking services, and trading platforms. Once the crackdowns came into place, the price of bitcoin tumbled. 

While miners get targeted and crypto exchanges and ICOs are banned, individuals still have the right to hold cryptocurrencies. 

China continues crypto crackdown

China’s regulations of the crypto industry are some of the most stringent across the globe. Despite news of stricter regulations coming out of countries such as the U.S., it has yet to banish miners and suppliers out of the country, as is the case in China. 

Last month, the global blockchain group IBC officially closed up its BTC and ETH mining facilities in China. Following that development, the major Chinese crypto exchange Huobi announced the closure of its Beijing branch due to the crackdown. 

Many industry analysts believe that the crypto crackdown by the Chinese government is a trillion-dollar geopolitical mistake. 

On the other hand, China’s central bank digital currency (CBDC), the digital yuan is making headway throughout the country. Nationwide trials of its digital currency are already underway, with one of the latest taking place in the Hainan province. 

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