Chinese regulators inspect cryptocurrency companies in Shenzhen

A wave of liquidation of companies associated with cryptocurrencies and ICO swept through Chinese cities. According to 8btc, after Beijing and Shanghai, the authorities intend to take similar measures in the technologically Shenzhen in southeast China. Regulators have already discovered 39 companies whose activities are illegally connected with cryptocurrencies. 11 Chinese regulators, led by the Bureau of Financial Regulation, have already talked with 8 companies, two of which are allegedly connected with cryptocurrency trading, and the remaining six are suspected of selling KAN, VSC, HOB, BST, and MCC coins to investors. “We conducted investigation online in the early stage, and then we investigated offline in some other ways. It doesn’t mean that the companies that have not been inquired have no problem and that those that have been questioned today at the meeting have troubles.” — the staff of Shenzhen Financial Regulatory Bureau said. The regulator also clarified that in the near future, law enforcement officers will be ready to continue to inspecting the remaining companies, and finally make a decision on the ones already inspected. Last month, the media reported that the Chinese central bank has taken a new step in tackling the problem of the illegal use of cryptocurrencies. The first city where inspection intensified was Shanghai. Also in October of this year, the Binance and Tron accounts were blocked on the Chinese social network Weibo, and the state television channel CCTV1 severely criticized cryptocurrencies, alleging fraudulent use of these assets. Since 2017, cryptocurrency exchanges have been closed in China, cryptocurrency fiat operations, and the main types of token sales (ICO / IEO) have been prohibited. The Government also encourages denunciations of citizens for offenses in this area.