China closed 11 cryptocurrencies in Shenzhen

Shanghai Securities Newsreported said on Tuesday that the Shenzhen branch of the People’s Bank of China (PBOC) had closed 11 unnamed units that exchange cryptocurrencies and provide cross-border stock trading services.
According to the PBOC quoted in the report, cryptocurrencies that are considered to be operating illegally in the country were “cleaned up”. Stock exchanges allegedly violated currency rules and provided cryptographic services despite a nationwide ban.

Cryptographic exchanges are not allowed to operate in China, and financial and payment companies are prohibited from providing cryptographic services.
However, the government has not made it illegal for individuals to possess crypt. Although the PBOC has not disclosed the names of the companies facing the measures, one of the targets is reported to be a “well-known domestic financial website”. The bank said it plans to run an education program for retail customers to protect them from risk.

The news comes shortly after the People’s Bank of China heavily promoted its central bank’s digital currency (CBDC), called e-CNY . PBOC has piloted CBDC in pilot programs in various Chinese cities, including Shenzhen. 2021. In June 2006, China carried out an intensive crackdown on Bitcoin mining, which led to the closure of several Chinese mining farms. The government also blocked access to cryptocurrencies to control capital outflows from the economy.

In response, stock exchanges such as Huobi and BTCChina announced that they would close down in China. Despite domestic repression, Chinese traders can still buy Bitcoin through foreign platforms such as Binance.