The Chinese central bank, the People’s Bank of China (PBoC) issued a statement on the financial authority’s stance on crytocrrencies. In it, the banked warned all local businesses involved in the digital assets sphere to bring themselves into regulatory compliance while it warned investors of the risks associated with the buying and selling of digital assets.
Speculative activity, worldwide, reached a fever pitch in recent weeks on the back of news circulating, that the Chinese government had taken a kinder look at blockchain technology. The Shanghai based Bureau of the People’s Bank of China said on Friday:
“Problematic firms that have conducted publicity campaigns, or have offered other services to offshore crypto exchanges, have been ordered to take immediate corrective action or exit the business” – According to Bloomberg
As previously reported, the Chinese government has been actively cracking down on digital asset exchanges based in the Asian nation. On the 22nd of November, Chinese news outlet Sanyan Finance reported that authorities in Shenzhen had identified 39 exchanges contravening the country’s ban on digital asset trading.
Though it is, as yet, unknown what the consequences for affected firms will be, Sanyan Finance did point out a desire by authorities ( a joint operation between the PBoC, Economic Investigation Bureau, Municipal Communications Bureau, and the Municipal Public Security Bureau) were targeting liquidity. Perhaps, in an effort to prevent value being directed out of the country through digital currencies.
“It is reported that the action will focus on three activities: first, providing virtual currency trading services or opening virtual currency trading places in China; second, providing service channels for overseas virtual currency trading places, including services such as drainage and agency trading; Sell tokens in various names, raise funds for investors or virtual currencies such as Bitcoin and Ethereum.” – Rough Translation of excerpt from Sanyan Finance article.
Prominent digital asset exchanges, operating in mainland China have reported no action from the law as yet, with Binance denying that their Shanghai offices were raided by authorities – as reports had stated. Bithumb also recently denied reports that they planned to close their China offices, while Houbi stated that they had received no official communication, instructing them to act within financial regulatory framework.
“We have heard of this from some media reports. However, we have not received any specific instructions at this point,” – Huobi Representative to Cointelegraph
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