The China Security Regulatory Commission (CSRC), an equivalent of the Securities and Exchange Commission (SEC), has again warned firms trading in cryptocurrency to drop the illegal act, putting it straight that it will go to any length to combat illegal digital currency traders.
In a serious warning to traders and companies directly or indirectly involved in crypto trading, the commission says the promotion of virtual currency trading activities has resurged in the country, claiming some trading platforms are offering crypto services to domestic residents.
The letter titled “Risk Tips on Further Preventing “Virtual Currency” Trading Activities” was written by CSRC’s Beijing office on 27 December 2019.
The letter indicates that some virtual currency trading services offered to domestic residents have initiated zero-interest loans, dual currency wealth management, and other projects through digital currency mortgages, which are in serious violations of the “Announcement on Preventing the Financing Risk of Tokens” issued earlier by the Central Bank of China in conjunction with seven other commissions and ministries.
The CSRC says the financial management departments, network telecommunications management departments, and public security departments within these jurisdictions are mounting pressure on virtual currency dealings, ICOs and disguised ICOs, making use of on-site interviews, administrative investigations, website closures, and criminal case filing to wage war on cryptocurrency trading.
CSRC (China SEC equivalent) just published a “serious warning” letter through its Beijing office about “Trading Cryptocurrency” https://t.co/1lQMv1iQLZ
I think impact will be minimal since most arrest activities have done. This will just drive the remaining exchanges out of BJ pic.twitter.com/WCmsHmlVOx
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) December 28, 2019
“We seriously warn institutions and personnel in Beijing that carry out related activities shall not publicize and promote relevant virtual currency projects or platforms, do not conduct virtual currency business sales or transactions, do not engage in virtual currency transactions or disguised transactions with investors, and shall not engage in or Acting on domestic and overseas virtual currency issuance and trading activities, financial institutions and non-bank payment institutions within its jurisdiction shall not provide services for any virtual currency transaction,” a translated version of the letter reads.
The letter warns investors to be careful with crypto projects, as some are designed to scam unsuspecting investors.
Earlier, many people mistook China’s interest in blockchain technology for cryptocurrency adoption. In fact, the price of Bitcoin went up when China’s president Xi Jinping declared support for blockchain technology.
