Authorities in Shenzhen have started pressuring crypto businesses operating in China’s tech capital. Eight companies, two suspected operators of trading platforms, and six entities allegedly associated with coin offerings, have been placed under inquiry, Chinese media revealed, with authorities reportedly questioning their representatives at a meeting hosted by Shenzhen Financial Regulatory Bureau.
Also read: Crypto Employees in China Work From Home to Avoid Government Pressure
Exchanges and ICOs Under Inquiry
Shortly after embracing blockchain, the Chinese government moved to demonstrate it hasn’t changed its negative stance on cryptocurrencies, trading venues and initial coin offerings (ICOs). For example, the Shanghai branch of the People’s Bank of China (PBOC) announced last month the strengthening of “supervision and control to crack down on virtual currency transactions.” A study led by the central bank concluded that only 4,000 out of 28,000 blockchain firms are actually working with blockchain technology. The “Bluebook on…