Three financial regulators in Shenzhen said they would “prevent further risks” in crypto trading, while warning that cryptocurrencies and related businesses are illegal in the mainland.
See related article: Law can’t cover crypto losses, China court reiterates
Fast facts
- Overseas staff of Chinese cryptocurrency exchanges, and individuals and organizations that promote, intermediate and provide technical support to cryptocurrency trading may face legal risks, local authorities said in a joint statement on Tuesday.
- Crypto-related businesses and mining farms started to announce withdrawals from China last September due to one of the world’s most stringent crackdowns on the industry.
- Following the warning from the trio of Shenzhen financial authorities, the People’s Bank of China released a note on Thursday to warn investors about cryptocurrency scams.
- Last week, state-owned Bank of China’s Chongqing branch also warned against crypto trading, and said related activities are illegal.
- Despite the local ban on cryptocurrencies, Chinese investors have found creative ways to bypass the ban.
See related article: Why domestic and overseas Chinese should worry about China’s crypto ban
