Beijing Authorities Warns Institutions Not to Get Involved with Crypto

Beijing’s local authorities in China have issued a new risk warning on cryptocurrency trading activities. The Beijing Local Financial Supervision Administration, the Business Management Department of the People’s Bank of China, the Beijing Banking and Insurance Regulatory Bureau and the Beijing Securities Regulatory released further measures to ask firms not to engage in crypto businesses. 

According to Shanghai Securities News, the authorities said that cryptocurrency trading activities have shown signs of resurgence, after the recent promotion of blockchain technology in China. Several platforms in the country have “seriously violated” rules issued in 2017, banning initial coin offerings (ICOs).  

The reminder also pointed out that the financial management departments, network telecommunications management departments, public security departments within the jurisdiction to watch closely on cryptocurrency transactions, and ICOs. 

The authorities also warned institutions in Beijing to not promote cryptocurrency projects or platforms as well as not to provide services related to cryptocurrencies. Investors have also been urged to remain rational to avoid deception and were encouraged to report violations of laws and regulations. 

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