Authorities in Shenzhen have started pressuring crypto businesses operating in China’s tech capital. Eight companies, two suspected operators of trading platforms, and six entities allegedly associated with coin offerings, have been placed under inquiry, Chinese media revealed, with authorities reportedly questioning their representatives at a meeting hosted by Shenzhen Financial Regulatory Bureau.
Also read: Crypto Employees in China Work From Home to Avoid Government Pressure
Exchanges and ICOs Under Inquiry
Shortly after embracing blockchain, the Chinese government moved to demonstrate it hasn’t changed its negative stance on cryptocurrencies, trading venues and initial coin offerings (ICOs). For example, the Shanghai branch of the People’s Bank of China (PBOC) announced last month the strengthening of “supervision and control to crack down on virtual currency transactions.” A study led by the central bank concluded that only 4,000 out of 28,000 blockchain firms are actually working with blockchain technology. The “Bluebook on Blockchain” report claims that as many as 25,000 entities have attempted to issue tokens.
After investigations into the local cryptocurrency market were initially conducted in the financial hub Shanghai and the capital Beijing, China’s most innovative and tech-oriented city also issued a warning against crypto business in its area. Soon after that, the Shenzhen Financial Regulatory Bureau revealed that law enforcement had identified 39 enterprises suspected of illegal activities related to cryptocurrencies. The local financial regulator announced that a cleanup in the sector was about to start in the near future.
Eight of these companies were recently placed under inquiry, the 8BTC crypto outlet reported, during a “rectification meeting” held by the bureau this past Wednesday, Dec. 18, with the participation of 10 other regulatory bodies. According to the publication, two of the entities are believed to be
