China’s Tech Capital Shenzhen Warns Against Illegal Cryptocurrency Activities

The Chinese technology capital of Shenzhen issued a warning against illegal activities related to cryptocurrencies.

On Nov. 21 local finance media, Eastmoney reported that Shenzhen’s Leading Group for Remediation of Internet Finance Risks will investigate and collect evidence on illegal activities involving cryptocurrencies.

Illegal Activities Reduced After Crypto Ban, Says Official Body

The Leading Group warns that since China banned local exchanges and initial coin offerings (ICOs) operational from 2017, the illegal activities associated with cryptocurrencies and financial risks were greatly reduced.

Although the regulator notes that the recent endorsement of blockchain technology by the central government reinvigorated cryptocurrency speculation.

With the increased speculation, cryptocurrency-related illegal activities in the country also purportedly ramped up.

The warning cites the issuance of crypto assets, ICOs, fictional uses of technology, fundraising in fiat or crypto and cryptocurrency exchanges as examples of illicit activity in the industry.

The regulator plans to undertake enforcement actions against such activities according to the “Announcement on Preventing the Risk of Subsidy Issuance of Financing.”

China Outpaces US In Blockchain Patent Filings

In recent news, China outpaced other countries including the United States in blockchain technology measured by patent applications. Chinese companies submitted around 7,600 applications between 2009 and 2018 — about three times as many as U.S.-based companies.

China’s Tech Capital Shenzhen, issued over 10 million blockchain-based invoices according to the Shenzhen Tax Service.

Source: East Money | Cointelegraph | CoinMod

#regulations #shenzhen #china #blockchain #cryptocurrency

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