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Beijing Authorities Reiterate Warning As Cryptocurrency Trading Resurges

In a joint statement on Friday, regulatory authorities in Beijing reminded individuals and firms to not engage in cryptocurrency trading or related businesses.

Benzinga · 12/27/2019 13:24

In a joint statement on Friday, regulatory authorities in Beijing reminded individuals and firms to not engage in cryptocurrency trading or related businesses.

The authorities said that the recent promotion of blockchain technology has led to a resurgence of cryptocurrency-related activities as well, including trading and businesses raising funds through initial coin offerings (ICOs), the Block reported, citing local publication Shanghai Securities News.

The issuing authorities included 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.

The statement asked individuals to stay "rational," and report any law violations to the authorities, according to the Block.

China has heavily discouraged cryptocurrency trading in the country, with outright bans introduced against exchange desks and ICOs in 2017.

But the country has betted big on blockchain technology, with President Xi Jinping calling for increased research and innovation in the field.

According to Tokyo-based research firm Astamuse, China received three times more blockchain patents than the U.S. till 2018.

When it comes to cryptocurrency, the government has favored developing its own centralized blockchain-based stable digital currency, expected to be piloted over the next year.