Shenzhen Authorities are Investigating Illegal Crypto Activities After Shanghai Inspects Exchanges

Nearly 40 crypto exchanges to get inspected by Shenzhen government to see if any illegal activities are happening just weeks after the Shanghai government did the same.

China seems to be very ambitious when it comes to putting down illegal cryptocurrency activities, causing a lot of speculations in the country.

After Shanghai has investigated the local crypto marketplace, it’s the technology capital Shenzhen’s turn to so the same. Local enterprises are being closely watched for illegal crypto activities. As Shenzhen News reports, authorities in Shenzhen have already identified not more than 39 enterprises that may be conducting this type of activities. The list of these enterprises is not public yet.

It Seems Illegal Crypto Activities in the Country Have Been Greatly Reduced

The Shenzhen’s Leading Group for Remediation of Internet Finance Risks, which is a regulator in Shenzhen, has released on November 21st a notice in which it says crypto illegal activities and associated financial risks have been greatly reduced in China, ever since initial coin offerings (ICOs) and local exchanged got banned, back in 2017. At the same time, the central government has released a blockchain endorsement that made everyone speculate again on the matter.

Under these circumstances, China’s tech hub Shenzhen has decided to try and put an end to crypto scams.

Companies Facilitating Cryptocurrency Trades Targeted

As the notice says, regulators are focusing on companies facilitating the trade of cryptocurrency, those that issue cryptocurrencies under the blockchain application and raise funds, firms that promote and provide ICO services, also crypto platforms that aren’t registered in the country.

The goal of the initiative is to put an end to scams and fraud in the blockchain and crypto space, which can be very good for the industry. The crypto exchanges providing marketplaces for scams may be forced to shut down their liquidity all at once, which will have the regulators more aware of their illegal activity.

Shanghai Did the Same

Not too long ago this week, China’s financial capital Shanghai has also started to investigate the illegal crypto market, putting many local second-tier exchanges under investigation.

However, big names such as Huobi, OKEx and aren’t suspected of anything, as they continue to operate in the country’s best interest. Many interpret these investigations as a preparation for the launch of DCEP, the central bank’s digital currency, which is set to happen soon. It’s very likely the DCEP will first be piloted in Shenzhen.

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Oana Ularu
Oana Ularu
Curious about what’s going on with all the money in the world, Oana is bringing you the latest news in the crypto world. She’s aware of the fact that you need to know everything that’s happening on the financial scene in order to play the cryptocurrency market, so you can count on her to share with you every little detail on what matters.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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