China’s dislike for cryptocurrencies is well known, and local administrations are cracking down on digital currency exchanges. Yesterday, the Shenzhen Municipal Bureau of Local Financial Supervision
issued a warning to investors to prevent illegal activities of ‘virtual currency’ trading.
In 2017, China released the ‘Announcement on Preventing the Risk of Subsidy Issuance Financing’ (Google translation), to curb crypto trading. Since then, the Municipality believed that the level of cryptocurrency activity has dropped.
However, the recent endorsement of blockchain by
President Xi Jinping has led to a resurgence of illegal crypto trading, and thus the warning from the region’s financial bureau. The Shenzhen authorities listed a host of activities that they’ve been investigating including executing “virtual currency transactions in the name of ‘blockchain innovation’”, publishing whitepapers and ICOs, according to the municipality statement.
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