The Chinese call these measures “rectification” meaning that authorities are bringing these companies in line with regulation.
The Chinese administration is going tooth and nail after all the crypto trading platforms operating in the country. The Shenzhen branch of the People’s Bank of China has initiated a clean-up measure for 11 such crypto companies.
The Chinese central bank has been cracking down on local crypto firms operating in the country. Even several Bitcoin miners had to flee the country amid the recent crackdown. The Chinese call these measures “rectification” meaning that authorities are bringing these companies in line with regulation.
As per the local reports, the Shenzhen branch of the People’s Bank of China (PBoC) has prepared the list of 46 such suspected companies. There were reports that these companies were part of illegal crypto trading activities.
As a result, the Shenzhen branch of PBoC created a special task force to identify and rectify companies involved in the crypto trade. The official notification also reads:
“Carry out special rectification of illegal virtual currency trading activities, and promptly clean up and rectify 11 newly emerging companies suspected of carrying out illegal virtual currency activities. Completed the rectification of a well-known domestic financial website that was suspected of propagating violations of foreign exchange deposit trading, and properly handled 8 reports of illegal and criminal activities related to online foreign exchange and cross-border stock trading.”
Putting High Pressure On Crypto Trading
Chinese authorities have been resolute in their anti-crypto stand and putting high pressure on crypto trading firms. Recently, the PBoC branch also completed the rectification of a well-known financial website. The Shenzhen PBoC branch dealt with eight reports of online forex cross-border stock trading services. As local news publication Global Times reports:
In addition to the crackdown, the bank has launched programs to help consumers avoid falling foul of financial regulations. This includes a pilot program that offers “targeted education” for financial consumers by establishing individual risk prevention and education plans. It also organized groups of specialists to provide door-to-door services to more than 3,000 companies, to help them better manage foreign currency issues.
China started with its strict crackdown earlier in May 2021. The regulators dealt strictly with crypto miners operating in the country. Previously, China alone accounted for 60% of the global crypto mining. However, the share has dropped significantly in the last two months.
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