Chinese state media brags about killing 11 companies caught using crypto

A number of startups suspected of carrying out illegal crypto-related activities in China have come under fire from the country’s central bank, reports Global Times.

Eleven companies suspected of illegal crypto-related shenanigans in China have come under fire from the country’s central bank, reports state media Global Times.

Authorities also moved against a prominent Chinese financial website and are investigating eight reports involving foreign currency exchange and cross-border trading.

In late July, the Shenzhen wing of the People’s Bank of China (PBoC) compiled a list of 46 activities which roughly translate to “practical things for the masses.”

Those activities supposedly relate to the most pressing and worrying issues affecting the public, with a strong focus on financial matters.

Indeed, China wants to address a slew of societal problems via its list without cryptocurrency. Goals include:

  • boosting employment,
  • strengthening communities with loans,
  • optimizing payment services to help the elderly cross the “digital divide.”

China’s Cat Coin was another warning

The Shenzhen PBoC crackdown makes up just one small part of the China’s war on crypto.

As well as instructing other major banks and payment companies to act tough on crypto trading, the bank has also targeted smaller companies.

In early July, the PBoC turned its attention to Beijing-based Qudao Cultural Development. The Chinese government forced the company closed on suspicion of facilitating crypto transactions with its software.

Qudao Cultural Development was reportedly behind a cryptocurrency called “Mao Li Coin,” which again roughly translates to “Cat Coin.”

China restricting cryptocurrency mining sent shockwaves through markets earlier this year.

[Read more: China murders ‘Cat Coin’ company, mounts head in latest crypto warning]

China’s government also prosecuted over-the-counter king Zhao Dong — the local Bitcoin billionaire behind RenRenBit — in May.

Zhao was tried alongside 11 others for laundering $480 million for an online gambling syndicate. He was said to have netted a 70% dividend for washing those funds.

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