Sunday, February 5, 2023

China’s Southern Hainan Province Warns Investor Of Illegal Crypto Activities

As China boosts a crypto crackdown, the financial regulators in the southern Hainan province of the country issued a warning informing the investors about the illegal fundraising schemes that involved cryptocurrency and blockchain, reported a local media on Thursday.

The local financial supervision bureau and a local branch of the People’s Bank of China are members of the regulatory group formed in the island province. 

The group warned the investors against illegal fundraising activities happening in the province under the name of virtual currency and blockchain, reports the state-backed Nanguo Metropolis Daily.

“No organisation or individual in Hainan Province shall illegally engage in token issuance and financing activities; any so-called token financing platform shall not engage in the business of exchange between legal tender and tokens or ‘virtual currencies’, and shall not buy, sell or act as a central counterparty to buy or sell tokens,” says the regulators.

The regulators have urged the financial and payment institutions in the country to not offer any direct or indirect services to crypto-related activities. They also advised the crypto trading platforms to provide pricing, trading or other intermediary services.

A few weeks ago, the Chinese authorities imposed a ban on crypto-related activities in the country and the recent statement by regulators was in line with that existing restriction.

The report suggests that a month ago, a State Council committee, which is being led by Vice Premier Liu He, announced to crack down on bitcoin mining and trading in the country, then just a few days later, the financial and payment services were asked to not provide their services to crypto-related activities.

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