China’s Central Bank Targets Crypto-Linked Firms in Shenzhen

(Bloomberg) -- The Chinese central bank’s branch in Shenzhen ordered almost a dozen companies operating in the technology hub to rectify illegal activities related to cryptocurrencies, signaling an intensifying crackdown on digital assets. 

The People’s Bank of China’s Shenzhen branch started a “rectification project” targeting illegal trading of virtual currencies and “cleaned up” 11 firms allegedly involved in illegal activities linked to virtual currencies in a timely manner, the Shanghai Securities News reported, citing the regulator. It didn’t name the companies. 

China has launched a new campaign against cryptocurrencies this year, taking action against miners and imposing curbs on crypto banking services and trading. The moves helped fuel a tumble for Bitcoin before tapering off, with the virtual currency rebounding over the past month to trade at around $45,000 on Wednesday. Chinese authorities have banned crypto exchanges and initial coin offerings but haven’t barred individuals from holding virtual currencies. 

The PBOC also ordered a financial website to fix violations related to promoting margin foreign-exchange trading and handled eight cases linked to illegal forex speculation and overseas stock investment, the newspaper reported, declining to name the website.

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With assistance from Bloomberg