Four financial regulators in China have jointly issued a fresh warning regarding crypto trading activities in Beijing. The notice explains the reason for the warning and lists prohibited crypto activities, which have reportedly been surging as companies ramp up their blockchain promotion.
Joint Warning by 4 Chinese Regulators
On Friday, four Chinese regulators jointly issued a notice on the prevention of crypto trading activities in Beijing. The four regulators are Beijing Financial Supervision Administration, Business Management Department of the People’s Bank of China (PBOC), Beijing Banking and Insurance Regulatory Bureau, and Beijing Securities Regulatory Bureau.
The notice begins by explaining that recent promotion of blockchain technology has led to increased crypto activities in China, adding that some platforms are providing crypto trading services to domestic residents and offering crypto products such as zero-interest loans. The notice emphasizes that these activities are “serious violations” of the “Announcement on Preventing Financing Risks of Token Issuance,” which was published by seven regulators in September 2017.
Among the seven regulators were the PBOC, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission. Their joint announcement on Sept. 4, 2017, led to the closing of cryptocurrency and initial coin offering (ICO) trading platforms in the country.
On Nov. 25, the PBOC published a financial stability report for 2019, stating that 173 domestic crypto trading and digital token platforms have “exited without risk.” Meanwhile, local regulators have also been implementing similar…