There are reports that Cryptocurrency exchanges operating illegally in one city in China will face the wrath of a joint government effort to oust them, reports claim.
On 22nd November, authorities have identified a total of 39 exchanges falling foul of China’s cryptocurrency trading ban, according to local news outlet Sanyan Finance.
Bitcoin and Ethereum Highlighted in Probe by PBoC
The operation reportedly included participation from China’s central bank, the People’s Bank of China (PBoC), the Economic Investigation Bureau of the Municipal Public Security Bureau and the Municipal Communications Administration.
The consequences of what the exchange will face still remain unknown, with Sanyan highlighting a desire to crack down on liquidity.
A rough translation states the measures involve a three-pronged approach:
“It is reported that the action will focus on three activities: first, providing virtual currency trading services or opening virtual currency trading places in China; second, providing service channels for overseas virtual currency trading places, including services such as drainage and agency trading; Sell tokens in various names, raise funds for investors or virtual currencies such as Bitcoin and Ethereum.”
There are previous reports by Cointelegraph of the existence of Shenzhen plans which also targets entities beyond the exchange sector.
Binance Says no Police Raids Took Place
According to reports by Cointelegraph, China continues to present a varied stance on cryptocurrency. After voicing support publicly for blockchain technology last month, Chinese media issued warnings not to confuse the policy for endorsement of phenomena such as Bitcoin.
Meanwhile, this week cryptocurrency exchange Binance denied rumors police had raided its office in Shanghai. Shortly afterward, the fellow exchange Bithumb also rejected the idea that it planned to close its Shanghai outpost, while Huobi stated likewise.
“We have heard of this from some media reports. However, we have not received any specific instructions at this point,” a Huobi representative said.
Commenting on the move by Shenzhen, the CEO of Binance Changpeng Zhang, praised what he saw as an effort to remove bad actors.
“This is actually a very good thing to happen, cleaning up the industry of scammers and fraudsters,” he wrote in response to PrimitiveCrypto’s founding partner, Dovey Wan.
There were also claims by Wan that the targets of the shutdown were “most likely are ponzi and crypto frauds as Shenzhen is known for being the hub of those.”