Chinese Central Bank’s Shenzhen Branch Targets 11 Illegal Crypto Firms

Fazzaco recently learned that the Shenzhen branch of the People's Bank of China (PBC), China's central bank, has launched a crackdown campaign targeting 11 new cryptocurrency-related companies suspected of engaging in alleged illegal activities.

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The central bank has been trying to crack down on crypto trading activities, aiming to protect Chinese citizens and combat the speculation of Bitcoin and other virtual currency transactions. In June, the PBC required financial institutions and payment providers to stop dealing with cryptocurrency transactions, as well as cut off any funding channels for crypto OTC merchants if found.

In addition to the 11 crypto firms, Shenzhen’s PBoC branch has reported eight cases of online forex speculation and stock trading violations per local laws. Moreover, the central bank has deployed an educational campaign to teach investors about risk prevention.

The bank 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.

As the Chinese government carries out a series of actions against crypto mining, companies like Bitmain, one of the world’s largest Bitcoin (BTC) mining hardware manufacturers, halted the sales of its machines for delivery globally​.