Shenzhen and Shanghai Take Steps to Enforce Crypto Trading Ban
NEWS
November 22  |  2 min read

Shenzhen and Shanghai Authorities Declare War on Cryptocurrency Exchanges

The COIN360 Editorial Team

Shenzhen authorities revealed that 39 exchanges in China are disregarding the country’s ban on cryptocurrency trading, reported local media resource Sanyan Finance on November 22. On the same day, the Shanghai office of China’s central bank announced an operation aimed to close all illegal activities related to cryptocurrency trading, promising to “adopt monitoring measures”

According to the media report, Shenzhen authorities have identified 39 exchanges that perform such banned activities as providing cryptocurrency trading services for Chinese citizens, opening channels for trading via foreign service providers, directly selling tokens and cryptocurrencies, or raising investments for projects outside the law.

The exchanges were reportedly identified with joint efforts from China’s central bank, the Municipal Public Security Bureau and the Municipal Communications Administration.

Law enforcement measures against identified exchanges were not stated in the media reports and remain unclear to the press time.

AS COIN360 earlier reported, 11 blockchain-related companies listed on the Shenzhen Stock Exchange were reportedly being investigated in the aftermath of the stock price surge at the end of last month.

In October China’s President, Xi Jinping, urged the country to speed up blockchain technology adoption, but various local media outlets have since issued warnings that this encouragement is not the same as softening their stance on cryptocurrencies.

In the meantime, Bithumb and Huobi also shared that so far they are not planning to close their Shanghai offices. Cryptocurrency exchange Binance reported that despite rumors, there were no police raids to its Shanghai office. Moreover, Changpeng Zhang, CEO of Binance, in a discussion with Dovey Wan, shared that these government actions are “actually a very good thing” for the industry, since it might help to clean the industry of “scammers and fraudsters.”