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All Cryptocurrency Platforms Have Been Eliminated in China’s Guangzhou, Local Regulator Says

All cryptocurrency platforms in Guangzhou, a city in South China have been withdrawn from the market normally. Besides, Internet equity financing, foreign exchange trading platform, asset management in Guangzhou have all been cleaned up and rectified.

Previously, Guangzhou has been strictly controlling financial risks, cracking down on illegal fund-raising activities with blockchain and cryptocurrency as gimmicks, and committed to promoting the healthy development of financial science and technology in the region.

On December 18, Guangzhou market regulatory bureau said it would strictly control the access of enterprises operating in the name of “blockchain”.

“We should not only promote the development of new-generation information technology like blockchain and digital economy industries, but also prevent illegal persons from registering market subjects of engaging in illegal business activities in the name of blockchain technology.”

Recently, two crypto exchanges ‘Biger’ and ‘Bithumb global’ with operation teams in China’s Shanghai, have taken legal measures successively to withdraw and disband the main body. At present, 11 crypto exchanges in China have been closed or under investigation by the police.

Bithumb global plans to cancel the domestic main body and terminate the labor relations of domestic employees. All technology and operations will be transferred to Singapore and Hong Kong. Previously, Bithumb global gave employees “long holidays” as police checking the crypto exchange in Shanghai on November 14. Bithumb global said that its global business has not been affected, but the official website has blocked IP in China.

China has previously taken steps to curb cryptocurrency trading in the country, but recent moves may eliminate trading in the country completely. China already banned bitcoin exchanges in late 2017 as a way to stem online trading, but the attempt failed to eliminate cryptocurrency trading completely. ICOs and virtual currency trading did not completely withdraw from China following the official ban. Almost Chinese traders turned to foreign exchanges to make cryptocurrency transactions.

Early in November, financial regulators in Shanghai has issued a notice to combat illegal cryptocurrency trade in the region. It reads that regulators in each district of Shanghai must search and investigate local crypto exchange-related services before Nov.22 and report to the central bank for further actions.

The country did not ban all crypto trading, however did tighten regulations on anonymous trading, and has set the tone for other countries looking to crackdown on the cryptocurrency market.

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