Beijing authorities urge companies not to conduct crypto business

Local regulators issue warnings on crypto promotion and trading

                                

Several regulators located in the Chinese capital Beijing have jointly urged local companies not to deal with cryptocurrencies, according to the official newspaper Shanghai Securities News.

The list of regulators, who issued the note, included the Beijing Local Financial Supervision and Administration Bureau, the Business Management Department of the People's Bank of China (PBoC), the Beijing Banking and Insurance Regulatory Bureau and the Beijing Securities Regulatory Bureau.

In the announcement, the authorities revealed that due to the promotion of blockchain in China the cryptocurrency technologies have come to light again. However, the blanket ban on trading and ICO, introduced in 2017, is still valid.

According to the regulators, some of the companies have seriously violated the 2017 law. Therefore, the regulators urge firms not to promote any of the crypto platforms or projects, as well as not to engage in crypto businesses and not to provide any crypto-related services.

Moreover, the companies were asked to report any violations of existing regulations.

Chinese president Xi Jinping repeatedly claimed that cryptocurrencies are nothing but unregistered securities, financial fraud and illegal Ponzi schemes.

However, the Chinese central bank is actively working on its own digital currency based on the national fiat, the yuan. The officials claim it will be completely different from Bitcoin and existing stablecoins.

FURTHER READING: Chinese president labels cryptocurrencies ‘financial fraud’

FURTHER READING: Digital yuan will be different from Bitcoin, Chinese official reveals

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