China: 39 Exchanges Violating the Ban On Crypto Trading

November 22, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

39 exchanges operating in the Chinese technological capital of Shenzhen, violating the ban on trading in digital currencies, according to Sanyan Finance.

According to the publication, the audit was conducted with the participation of the People’s Bank of China, the Economic Investigation Service of the Municipal Public Security Bureau and the Municipal Communications Administration.

What consequences await violators is unknown. The source claims that in this way, authorities seek to nip existing opportunities for exchanging cryptocurrencies on their territory.

“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,” Cointelegraph citing an excerpt about the contents of the current transaction.

Shortly before it became known that local authorities issued a warning regarding illegal activities in the cryptocurrency sector. As the Internet Financial Risk Eradication Group reported, since the cryptocurrency trading ban in the country in 2017, the scale of illegal activities in this area has significantly decreased. Nevertheless, recent top-level speeches by the Chinese leadership in support of blockchain technology have generated not only new speculation but also a surge of prohibited activity.

Author: Marko Vidrih