China Crypto Crackdown: 11 Companies Shutdown in Shenzhen Province

China is taking fresh steps in its crackdown on cryptocurrencies in the country. In the most recent action, the central bank branch in Shenzhen has announced the closure of 11 companies in the province. According to the central bank, the companies are suspected of crypto trading which the government has been trying to stop.

According to reports, these are just 11 out of 46 companies that have been mapped out by the special task force of the bank for allegedly trading cryptocurrencies. The task force is responsible for rectification and cleaning of the companies.

The Shenzhen branch of the Central Bank of China recently launched a special crackdown on illegal cryptocurrency trading activities and shut down 11 companies suspected of conducting illegal virtual currency activities.

— Wu Blockchain (@WuBlockchain) August 17, 2021

Crackdown to continue as Digital Yuan progresses

The crackdown on cryptocurrencies has been in China for many years now. The closing down of these 11 companies is only the first batch out of the 46 marked. The central bank says this effort will be ongoing particularly in the second half of 2021.

Meanwhile, the Chinese government has been aggressively pursuing the launch of a Digital Yuan. The digital currency has gone through several testing processes in major cities including Shenzhen Province. Citizens have also been given the opportunity to use the digital currency to test its suitability for regular use.

The pursuit of a government-issued digital currency in China has been mainly as a strategy to discourage the use of decentralized digital currencies such as Bitcoin and Ethereum. Cryptocurrencies however are getting more popular everyday as investors turn to it as investments. Although China continues with its crackdown and the Digital Yuan, the country will have to fight a long fight to rid itself of the crypto revolution.

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