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Is China Stealing Crypto Currencies From Local Companies?

According to a report by the state-run Shanghai Securities News on Tuesday, the Shenzhen branch of the People’s Bank of China (PBOC), China’s central bank, has “cleansed” 11 companies for their involvement in suspected illegal cryptocurrency activities as part of a special campaign to demonstrate a zero-tolerance attitude toward cryptocurrency trading.


The article did not go into detail about how these companies were dealt with.


Shenzhen, a global hub for computing gear, including cryptocurrency mining equipment, was a crucial hub for China’s digital token investment community.


The city’s financial officials, on the other hand, have conducted many efforts to prohibit anything remotely related to cryptocurrencies, as digital tokens such as bitcoin are viewed as a threat to the country’s financial stability.


Shenzhen closed down eight organisations in February 2021 that were involved in activities including selling wealth management solutions backed by bitcoin, promoting digital tokens as investment vehicles, and introducing offshore cryptocurrency projects to local investors.


The PBOC’s Shenzhen division has also cracked down on unlawful cross-border trading in foreign currencies and stocks.


Premier Liu He, the Chinese president’s top economic and financial adviser, declared in May a new crackdown on bitcoin production and trade in the country in order to reduce financial risks.