BUSINESS Central bank's Shenzhen branch clamps down on crypto token transactions


Central bank's Shenzhen branch clamps down on crypto token transactions

Global Times

12:58, August 17, 2021

Bitcoin, a type of cryptocurrency Illustration: VCG

The Shenzhen branch of the People's Bank of China (PBC), China's central bank, has undertaken a campaign to crack down upon illegal crypto token transactions, targeting 11 new companies that are suspected of engaging in illegal crypto token activities, the reported.

The bank identified one well-known domestic financial website that was suspected of illegally advertising foreign exchange cash deposit transactions. It has also investigated eight reported cases involving online foreign currency speculation and cross-border stock trading violations.

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.

The bank's move to clamp down on crypto token trading came after a national initative to tighten management of crypto currencies such as Bitcoin.

In May, the State Council, China's cabinet, vowed to address mining and trading as part of a campaign to control financial risks. This was followed by a number of Chinese financial institutions like the Agricultural Bank of China and Alipayannouncing efforts to root out illegal crypto mining and trading.

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