Bitcoin, a type of cryptocurrency Illustration: VCG
The Shenzhen branch of the People’s Bank of China (PBC), China’s central bank, has undertaken a campaign to crack down upon illegal crypto token transactions, targeting 11 new companies that are suspected of engaging in illegal crypto token activities, the cnstock.com reported.
The bank identified one well-known domestic financial website that was suspected of illegally advertising foreign exchange cash deposit transactions. It has also investigated eight reported cases involving online foreign currency speculation and cross-border stock trading violations.
In addition to the crackdown, the bank has launched programs to help consumers avoid falling foul of financial regulations. This includes a pilot program that offers “targeted education” for financial consumers by establishing individual risk prevention and education plans. It also organized groups of specialists to provide door-to-door services to more than 3,000 companies, to help them better manage foreign currency issues.
The bank’s move to clamp down on crypto token trading came after a national initative to tighten management of crypto currencies such as Bitcoin.
In May, the State Council, China’s cabinet, vowed to address mining and trading as part of a campaign to control financial risks. This was followed by a number of Chinese financial institutions like the Agricultural Bank of China and Alipayannouncing efforts to root out illegal crypto mining and trading.