Shenzhen City Authorities Warns Against Illegal Crypto Activities After Recent Blockchain Hype

    According to Eastmoney, Shenzhen, the tech capital of china recently issued a warning against illegitimate dealings taking place in the cryptocurrency industry. The report released by Eastmoney indicated that the Leading Group for Remediation of Internet Finance Risks, a regulatory body in the city, is investigating all illegal dealings in the crypto space.

    According to the Leading Group, the illegal activities are more rampant in Initial Coin Offerings (ICOs), issuance of cryptocurrency assets, use of fiat to fundraise, crypto exchanges and fictional use of crypto and blockchain technology.

    The officials claim that the ban on crypto is aimed at improving safety in the industry. According to the regulatory body, the illegal activities had reduced since China’s ban on ICOs and local exchanges in 2017. Ever since the ban, financial risks associated with the industry also significantly reduced.

    However, after the recent official endorsement of the blockchain technology and crypto industry by president Xi Jinping, the speculation of cryptocurrency has been rejuvenated. The public interest in blockchain tech and cryptocurrency greatly increased, leading to a gain in the crypto market. This has, unfortunately, been followed by an increase in illegal activities in the industry.

    According to a report recently issued by Cointelegraph, the Chinese state media claims that over 32,000 Chinese companies claim to be using the blockchain technology. However, after research, it was found out that only 10% of the companies claiming to be using the technology actually use it. Most of the firms have been taking advantage of the blockchain hype to sell their businesses.

    The Chinese regulator plans to take enforcement actions after the accumulation of the requisite evidence against such malicious activities in accordance with the Announcement on Preventing the Risk of Subsidy Issuance of Financing.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Denis Miriti
    Denis Miriti
    Denis Miriti is an excellent writer that perfectly understands financial markets, which allows me to provide great quality of writing on the niche. I have 3 years of experience as a freelance Forex writer, creating educational articles, strategies, news re-written articles, forecasts and much more. Other skills include Bitcoin, Blockchain and Cryptocurrency writing.

    [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


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Microsoft Files Patent To Mine Cryptocurrencies With Verified Body Activity Data

    Giant software manufacturer, Microsoft is seeking to capitalize on the new crypto hype. The firm is seeking to introduce its own cryptocurrency that will...

    Coinbase Commerce Crosses $200,000,000 In Crypto Payments Since Launch

    Covid-19 hasn't kept consumers from using bitcoin (BTC) as a means of payments for goods and services according to a merchant transaction report from...

    Singapore Exempts Binance, Coinbase, Gemini, and Ripple From its Current PSA Crypto Act

    Singapore is counted among one of the crypto hubs of the world as it offers ease of business for these crypto service providers when...

    The World Has Gone Full Crypto in 2020; Volatility is Up, Stocks Are trading like A Sh*tcoins

    The global markets are on a rollercoaster for the past few weeks, one day they are recording historical one-day gains the next they are...

    South Korea May Get A New Crypto Custodian After Largest Bank Files Trademark App

    KB Kookmin Bank, the largest bank in South Korea, is preparing to launch its cryptocurrency custody service as soon as possible. As per the local...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.