Shenzhen financial regulators vow to prevent ‘further’ crypto risks

Three financial regulators in Shenzhen said they would “prevent further risks” in crypto trading, while warning that cryptocurrencies and related businesses are illegal in the mainland. 

See related article: Law can’t cover crypto losses, China court reiterates

Fast facts

• Overseas staff of Chinese cryptocurrency exchanges, and individuals and organizations that promote, intermediate and provide technical support to cryptocurrency trading may face legal risks, local authorities said in a joint statement on Tuesday. 

• Crypto-related businesses and mining farms started to announce withdrawals from China last September due to one of the world’s most stringent crackdowns on the industry.
• Following the warning from the trio of Shenzhen financial authorities, the People’s Bank of China released a note on Thursday to warn investors about cryptocurrency scams. 

• Last week, state-owned Bank of China’s Chongqing branch also warned against crypto trading, and said related activities are illegal.

• Despite the local ban on cryptocurrencies, Chinese investors have found creative ways to bypass the ban.  

See related article: Why domestic and overseas Chinese should worry about China’s crypto ban