Chinese authorities once again picked up arms against digital currencies as the People’s Bank of China’s (PBoC) Shanghai headquarter on Friday revealed its intentions to crack down on crypto trading.
This came with the hype in the digital currency market amid the speech of Chinese President Xi Jinping endorsing blockchain and asking the companies to capitalize on it.
The central bank clarified that blockchain technology and cryptocurrencies are not the same and warned against the risks involved with digital asset trading.
“There are multiple risks in virtual currency issuance financing and trading, including false asset risk, business failure risk, investment speculation risk, etc. Investors should enhance their risk prevention awareness and beware of being fooled. Being cheated,” the regulator stated.
The PBoC will “adopt monitoring measures such as interviews, inspections, and bans on the monitored entities” to curb the threats of rising activities with digital assets.
A history of banning crypto
Meanwhile, earlier today, reports surfaced that the Schengen law enforcements also identified 39 “illegal cryptocurrency” companies operating in the region. These companies are suspected to be operating Ponzi and fraudulent schemes.
UPDATE: Shenzhen law enforcement identified 39 “illegal cryptocurrency” companies
Most likely are ponzi and crypto frauds as Shenzhen is known for being the hub of those. According to the news, exchanges involved will be impacted, waiting for full listhttps://t.co/pkVHYPVqlj https://t.co/gdsXyS28nO
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) November 22, 2019
The impact of the Chinese stance against cryptocurrencies can be clearly seen on the market as the price of Bitcoin dropped more than 10 percent in the last 24 hours going below $7,160.
Yesterday, multiple news agencies reported that the Shanghai offices of crypto exchange Binance and Bithumb were raided by local police, resulting in their shut down. However, both the exchanges refuted the claims.