Illegal Cryptocurrency Firms to be Taken Out by China’s Central Bank

Cryptocurrency Cryptocurrency Regulation News

The latest reports coming in from the Chinese cryptocurrency sector reveal that the Chinese regulatory authorities are growing more aggressive against crypto-firms. However, it has been clarified that the Chinese regulators are now going after cryptocurrency firms that are running illegal operations in the country.

The sources revealed that it is the People’s Bank of China’s (PBoC) Shenzhen branch that is going to take a hardline approach on crypto-firms. The particular branch of the People’s Bank of China would now act aggressively against the cryptocurrency-related firms operating illegally in China.

The main source of information around the matter is the Shanghai Securities News that is run by the Chinese state. The particular news reporting firm provided information on the matter on Tuesday, August 17, 2021.

The reports suggest that the regulatory authorities in Shenzhen have recently gone ahead and taken strict action against eleven cryptocurrency trading firms. According to reports, these particular cryptocurrency trading firms have been alleged to be involved in illicit cryptocurrency trading activities.

The news reporting firm has announced that it has taken care of 11 cryptocurrency firms. In the process, all these firms have been cleaned up and rectified by the Shenzhen regulators. The firm has clarified that all these firms have been taken out due to their involvement in illegal cryptocurrency activities.

For now, the names of the cryptocurrency firms have not been revealed by the regulatory authority. Furthermore, even the sanction details have not been confirmed against the cryptocurrency firms.

The regulatory authorities have revealed that their aim is to take down any firms that are currently involved in processing illegal transactions across the borders. At present, stock trading, as well as cryptocurrency trading platforms, are being used in abundance to carry out money laundering.

Unfortunately, there are many firms in China that are responsible for soliciting and facilitating such elements to process such transactions. Therefore, the People’s Bank of China has expedited the process of taking such cryptocurrency exchanges and firms down.

The regulatory authority has announced that while the money laundering cases are on top of the list, they are not the only breaches they are going after. They are also going after other cryptocurrency firms that are breaking the law or breaching the regulations in a different manner.

In order to ensure that no future firms of this sort are given a platform by China, the PBoC has come up with a strategy. The regulatory authority has announced that it will be carrying out a pilot project, which will be known as precision education.

The precision education program would ensure that the cryptocurrency exchanges operating in the country go through proper training as well as the consumers before they can perform activities in the online trading sector.

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