London Daily

Focus on the big picture.
Friday, Jun 20, 2025

China dampens blockchain fever with cryptocurrency trading crackdown

China dampens blockchain fever with cryptocurrency trading crackdown

October speech by Chinese President Xi Jinping triggers surge in speculation. Central bank warns of ‘severe disruption’ to economic and financial order

China has initiated a fresh crackdown on virtual currency initial coin offerings and cryptocurrency trading – which are banned in the country – in response to a surge in blockchain fever.

The governments of top tier cities, including Beijing, Shanghai and Shenzhen, issued risk alerts to the public, warning of “illegal fundraising”, financial frauds or pyramid selling.

They also joined hands with the national internet finance association and the computer network emergency response centre to search for local traces of activity on the ground and tried to cut off connections with offshore platforms.

The coordinated endeavours came after President Xi Jinping hailed the use of blockchain technology in late October, a move meant to push technological development and troubleshoot with new technologies but which unexpectedly fuelled investor enthusiasm for cryptocurrencies.




The price of bitcoin, the most well-known application of the technology, rose nearly 40 per cent to more than US$10,000 soon after Xi’s speech. Its value has since fallen by about 30 per cent.

The Shanghai headquarters of the People’s Bank of China said on Friday that speculation in virtual currencies was on the rise since the promotion of blockchain technology and it had “severely disrupted economic and financial order”.

“Investors must not treat virtual currencies the same as blockchain technology. The issuance and trading of virtual currency contain multiple risks, including fictitious assets, operation failure and speculation,” it said.

In the risk alert issued on Thursday, Shenzhen’s financial regulator specified three targets for crackdown, including onshore trading platforms, service channels for overseas registered virtual currency trading platforms and virtual currency sales. Thirty-nine local enterprises suspected of running virtual currency businesses had been identified, it said.

Meanwhile, Beijing police said they had cracked a fraud case concerning a trading platform called BISS, detaining dozens of people. No further details were provided.

China banned onshore cryptocurrency trading in September 2017, calling it a threat to financial stability, as part of the country’s de-risking campaign, which has also targeted peer-to-peer online lending platforms.

The government has already shut down six onshore virtual currency trading platforms, disposed of another 203 platforms linked to overseas servers and closed nearly 10,000 payment accounts, as well as about 300 WeChat marketing accounts, according to China Securities Journal.

“Such activities are not really based on blockchain technology, but use the concept to illegally raise funds, conduct pyramid selling or fraud,” the state-run newspaper said.

Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×