China’s Central Bank Closes 11 companies Suspected of Crypto Trading

People’s Bank of China, Shenzhen Center Branch, announced that the Chinese Central Bank shut down 11 companies suspected of conducting illegal crypto trading.

According to local reports, the Shenzhen branch of the Chinese Central Bank made a list of 46 firms suspected of being involved in illegal virtual currency trading in July.

Also, the reports say that the Shenzhen branch’s special task force was created to seek and correct firms implicated in the illegal crypto trade. Based on the official notice, the branch said,

“Carry out special rectification of illegal virtual currency trading activities, and promptly clean up and rectify 11 newly emerging companies suspected of carrying out illegal virtual currency activities."

In addition, the firm noted that it completed the rectification of a well-known domestic financial website that was suspected of propagating violations of foreign exchange deposit trading. "And properly handled 8 reports of illegal and criminal activities related to online foreign exchange and cross-border stock trading,” the Shenzhen branch said.

It is really not looking good for the crypto community in China. Recently, the Chinese Central Bank mentioned it would continue its crackdown on digital assets in the second half of the year.

China's last crypto crackdown in May brought the crypto market to its knees. At that time, China deemed more than 60% of Bitcoin (BTC) mining hash power as most mining farms operated out of the country.

However, the Chinese crackdown is not new. In 2013, the country banned the use of cryptos altogether. More so, in 2017, it banned all crypto exchanges in the country.