May 24, 2022

The authorities of the Chinese city of Shenzhen inspect cryptocurrency exchanges

The authorities of the Chinese city of Shenzhen inspect cryptocurrency exchanges

The municipal authorities of the Chinese city of Shenzhen together with employees of the People's Bank of China Investigation of 39 cryptocurrency exchanges. The names of the trading floors were not disclosed.

Officials will check how cryptocurrency exchanges comply with legal requirements. The inspection aims to identify the following types of violations:

  • the provision of trade services to Chinese citizens;
  • creation of payment channels for withdrawing money to foreign exchanges;
  • raising funds during the sale of tokens.
  • Government plans to complete investigationuntil November 25th. All trading floors that violate the rules will be forced to stop their work. From November 14 to 22, a similar check took place in Shanghai. Specialists of the Financial Services Agency and the Central Bank studied the activities of enterprises that trade in virtual currencies and tokens issued during the ICO by foreign companies. Inspection results have not yet been published.

    China continues to struggle with the virtual sectoreconomy, because many local residents bypass the ban on participation in ICOs, which has been in force since 2017. In November, the Weibo social network joined the anti-cryptocurrency campaign, blocking the accounts of the Binance exchange and the Tron Foundation startup blockchain for violating internal rules. However, Huobi and OKEx trading platform accounts were not repressed.