The Chinese authorities are going after 124 overseas cryptocurrency exchanges whose services are available in the country, despite the ban on crypto trading that came into effect last autumn.
According to a report of the financial news outlet Shanghai Securities Times, the China National Fintech Risk Rectification Office has identified those platforms and is going to adopt “targeted clean-up measures to maintain financial order and social stability”. Those will include active monitoring in real time and blocking access.
Those measures, according to people close to the organization, are taken in order “to consolidate the results of special rectification work and prevent financial risks”.
The fintech risk rectification office was set up in 2016 to protect China from the risks of peer-to-peer lending and cryptocurrency trading.
Another set of measures the authorities announced and immediately carried out was the shutting down of crypto- and blockchain-focused accounts in the Chinese payments and messaging client WeChat. Allegedly, those accounts were providing crypto trading and initial coin offerings (ICOs).
According to the publication, the risk rectification office was also in touch with third-party payment providers to monitor and terminate accounts suspected of carrying out cryptocurrency-related transactions.
The Chinese authorities began picking a fight with the ICOs and the cryptocurrency trading last autumn under the guise of minimizing financial risk. However, all the popular cryptocurrency exchanges operating in China moved out of the country and set up shop in more crypto-friendly countries.
Shanghai Securities Times claims that 88 domestic cryptocurrency exchanges and 85 ICO platforms have been expelled and Bitcoin-for-yuan trading fell from 90% of the global market, to less than 5%, “effectively blocking the negative impact of the virtual currency price plunging on China, avoiding a virtual currency bubble”.