A recent Cnstock report suggests that the Shenzhen branch of the People’s Bank of China is in pursuit of illegal forex and cryptocurrency trading companies and has recently caught hold and closed 11 companies operating in the trading, financial industry, or digital assets.
The People’s Bank of China subcommittee has further compiled a list of 46 companies under the investigative agencies which are being tracked accordingly for any kind of illicit activities that are being carried on while violating China’s FEMA rules and policies. The regulator is waiting to pursue any company that provides illegal financial services.
The investigation aims to take action against illegal transactions of virtual currencies and illegal online trading of foreign currencies. The branch has reportedly shut down 11 companies suspected of possessing illegal cryptocurrency, counterfeit or commercial activities that goes against the policies.
Furthermore, the campaign’s goal is to provide “accurate education” for private investors, leading to customer profiling and the organization of personalized risk mitigation and educational programs.
The Chinese government is trying to take the lead in providing financial digital services for capital projects. The government authorities further plan to ban private crypto and other financial activities and thus only allow the China Merchants Bank to operate projects and online businesses that allow Chinese citizens to use foreign exchange and other related facilities.
In addition to the regulation of private finance companies, commercial banks also face the mandatory implementation of various services developed by the Central Bank.
