The People’s Bank of China’s Shenzhen branch stated it plans to rectify 11 firms for engaging in illegal crypto trading.
After recently completing what it characterized as “the correction” of the domestic financial platform, the Central Bank is determined to maintain the pressure on the crypto trading business.
It’s unclear if the targeted companies have been permitted to resume their other everyday operations. The PBOC has closed down the 11 businesses, said Chinese crypto-journalist Colin Wu, better known as ‘Wu Blockchain’ on Twitter.
Suspected Illegal Practice
According to a report, the People’s Bank of China’s Shenzhen Central sub-branch had compiled a list of illegal activities by the end of July.
The report further stated that by August 8, around 89,381 firms had been visited, with 20,664 companies receiving 52.379 billion Yuan in credits.
The Shenzhen regulatory effort coincides with Beijing’s continuing fight against activities using decentralized crypto coins in the country. It also corresponds with attempts to use the People’s Bank of China’s new national digital Yuan currency, also a CBDC.
The report further mentioned that 1,888 individual industrial and commercial families had received loans worth 3.249 billion Yuan.
Rectification” is a phrase used frequently in China to describe the government’s attempt to force firms to behave predictably, and it has been widely utilized in last year’s crackdown on digital companies, especially during the raid at the Ant Group.
Alibaba’s Ant Group was scheduled to have a dual listing on the stock exchanges of Hong Kong and Shanghai via STAR in November last year. However, the Chinese government halted Ant’s $37 billion stock debut two days before the IPO, citing that the platform was to be scrutinized according to regulations.
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