In the latest indicator of the central bank’s crackdown, the People’s Bank of China in Shenzhen has vowed to clean up and rectify some enterprises involved in illegal cryptocurrency trading.
According to local press reports, the central bank’s Shenzhen branch published plans that would bring 11 companies into compliance with regulations. The term “rectification” was frequently used euphemistically by Chinese authorities as a code word for “strong direct enforcement action” against those involved.
The slogan has gained popularity in recent months, most notably with Ant Group, which was sanctioned by the authorities as part of the bank’s new assault on digital currency and internet enterprises.
According to a conference of senior officials held last month, the People’s Bank of China is determined to maintaining a high-pressure approach to industry supervision, which will involve increased enforcement action against individuals who violate the industry’s strict rules and regulations.
According to sources, the central bank has finished rectification against a well-known local financial website that offers forex deposits and dealing with eight different organizations that offer forex and international stock trading services.
It comes after Chinese officials announced in May that they would begin a crackdown on block reward mining companies in response to a notice from the State Council, the country’s council of ministers.
China’s latest five-year plan mentioned the predicted crackdown on digital businesses, which caused substantial turmoil in Chinese equities and capital markets earlier this month.
With the Shenzhen branch’s latest promise, it appears that things are likely to get even harsher for enterprises that operate outside of the present rules set by the central bank and other authorities.