China Crackdown in Full Effect: 11 Crypto Exchanges in Shenzhen Shut Down

Shenzhen is cleaned of 11 cryptocurrency exchanges as the Central Bank of China communicated.

According to Shanghai Securities News, China’s Shenzhen branch of the People’s Bank has recently shut down 11 anonymous entities which were offering stock trading services across the border and also actively running cryptocurrency exchanges.

It turns out, PBOC marked these companies involved in unlawful activities in China, and they quoted that they were “cleaning up” the crypto exchange market. Not only did these 11 companies offer cryptocurrency services even though it was against the national ban, the exchanges were also disrupting the foreign exchange regulations.

Similarly, the central bank of China ordered the immediate shut down of a company in Beijing (Beijing Qudao Cultural Development Co Ltd), for illegally providing cryptocurrency services back in July.

Although the government of China has not made a ban that prevents people from having cryptocurrencies, they still have a lot of restrictions for financial companies, given that they cannot offer any form of crypto services.

Related: Electric Vehicle Industry Takes Advantage of Bitcoin Mining Ban in China

PBOC has declared that they will establish an educational program that seeks to raise awareness and protect the consumer from such potential risks. As per the names of the companies closed due to these activities, the PBOC has not given any information, however, they emphasize that one of the companies is among the “well-known financial domestic websites”.

China’s Central Bank Digital Currency (CBDC), also known as e-CNY, has been endorsed profoundly by China’s Central Bank. Even the PBOC has begun testing this new currency in various pilot programs in cities across the country.

Back in June 2021, China significantly stunted Bitcoin (BTC) mining in the country, which led to a number of farms stopping their operations. One of the reasons behind China’s decision to ban crypto exchanges is the state’s control over capital outflows of its economy.

Meanwhile, exchanges such as Huobi and BTCChina declared that their operations in China will continue to downslope. Besides this downgrade, China’s traders can continue to buy Bitcoin (BTC), however, it must be done via an overseas platform, such as that of Binance.

In a recent tweet, Wu Blockchain claimed that phone numbers have started being registered, after a two-week pause from the state. 

Also read: Crypto Investors Still Have an Escape Option: India’s Crypto Bill Nearing Finalization