Beijing authorities issue warning: Firms must not conduct crypto business

Several local authorities in China’s capital city, Beijing, have jointly issued a new risk warning on cryptocurrency trading activities.

The Beijing Local Financial Supervision and Administration Bureau, the Business Management Department of the People's Bank of China, the Beijing Banking and Insurance Regulatory Bureau, and the Beijing Securities Regulatory Bureau, have all asked firms not to engage in crypto businesses, according to a notice issued Friday.

The authorities said, with the recent promotion of blockchain technology in China, cryptocurrency trading activities have shown signs of resurgence. Some platforms have “seriously violated” rules (issued in 2017) banning initial coin offerings, added the authorities.

Accordingly, they have ordered all firms to not promote cryptocurrency projects or platforms; not engage in crypto trading business; and not provide any services related to cryptocurrencies.

The authorities have also urged investors to remain rational to avoid being deceived, as well as to report any violations of laws and regulations.

Last year, Beijing’s Municipal Bureau of Finance also said that fund-raising activities via security token offerings are “illegal." Chinese authorities have taken stringent measures since 2017, banning ICOs outright, and forcing crypto exchanges to cease operations.