China Closes 11 Crypto Companies in Shenzhen

By | August 23, 2021

According to the trending news in the cryptocurrency sector, the People’s Bank of China (PBOC) continues its crackdown on digital in the country. The Shenzhen branch of PBOC has recently shut down 11 companies running crypto exchanges and cross-border trading operations.

The Central Bank hasn’t disclosed the names of the firms but hinted that one of the entities was a well-known Chinese financial site.

Chinese Central Bank has also launched an investigation on 8 entities that are suspected of cross-border stock trading.

PBOC says it has “cleaned up” illegal exchanges of crypto

The bank claims that the companies were operating in Shenzhen illegally and have violated foreign exchange laws, as all financial institutions are banned from providing crypto-related services in China. 

This isn’t the first time PBOC cracks downs on companies that conduct crypto-related operations. In July, Chinese authorities have closed a software development firm, Beijing Qudao Cultural Development Co Ltd, for crypto-trading.

To protect customers and businesses from financial risks, the People’s Bank of China has also announced a new educational program. Teams of experts will train more 3 000 companies on foreign currency exchange matters.

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