People’s Bank of China in Shenzhen ‘clean up’ plan targets illicit digital currency firms

The People’s Bank of China in Shenzhen has promised to “promptly clean up and rectify” a number of companies involved in illicit cryptocurrency trading, in the latest signs of a crackdown from the central bank.

According to local press reports, the Shenzhen branch of the central bank published plans stating that it would bring some 11 companies into line with regulation, with “rectification” often used euphemistically by authorities in China as an indicator of strong and direct enforcement action against those involved.

The phrase has come to increasing prominence in recent months, most notably with Ant Group, which the authorities took corrective action against as part of the bank’s new crackdown against digital currency and tech sector companies.

As per a meeting of senior officials last month, the People’s Bank of China is committed to maintaining a “high pressure” approach to regulating the industry, which is set to include enhanced enforcement action against those straying from the tightly set rules and regulations governing allowable practices.

According to the reports, the central bank has already completed rectification against a “well-known domestic financial website” offering forex deposits, as well as dealing with eight separate companies known to be offering forex and international stock trading services.

It follows a decision by Chinese authorities to begin a clampdown against block reward mining firms in May, following a notice from the State Council, the country’s cabinet of ministers.

The promised crackdown on tech companies in China was also detailed in the latest five-year plan published earlier this month, causing significant unrest in Chinese equities and capital markets.

With the latest commitment from the Shenzhen branch, it looks like things could be about to get even tougher for companies operating outside the guidelines currently permitted by the central bank and other authorities.

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