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.

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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

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