A total of 39 cryptocurrency exchanges in China identified by the authorities in Shenzhen failing on China’s cryptocurrency trading ban.
Reports claim that the exchanges operating illegally in China will face the consequences of a joint government effort to expel them.
The operation reportedly included participation from:
- The People’s Bank of China (PBoC)
- The Economic Investigation Bureau of the Municipal Public Security Bureau
- The Municipal Communications Administration
Although it remains unknown what consequences the exchanges will face while reportedly revealing a crack down on liquidity:
“It is reported that the action will focus on three activities: first, providing virtual currency trading services or opening virtual currency trading places in China; second, providing service channels for overseas virtual currency trading places, including services such as drainage and agency trading; Sell tokens in various names, raise funds for investors or virtual currencies such as Bitcoin and Ethereum.”
Shenzhen Warned Earlier Against Illegal Crypto Activities
Recently, the Chinese technology capital of Shenzhen issued a warning against illegal activities related to cryptocurrencies. The Shenzhen’s Leading Group for Remediation of Internet Finance Risks was to investigate and collect evidence on illegal activities involving cryptocurrencies.
During this month, Shenzhen, issued over 10 million blockchain-based invoices according to the Shenzhen Tax Service. Tagged as ‘Shenzhen Speed’ the blockchain invoices are being used on-demand without any need for purchasing physical tax invoices from authorities.