China intensifies its crack-down on crypto-related entities with the recent suspension and ban of the China Blockchain Application Center (CBAC). Even though this organisation had the backing of former regulators, it was shut down for operating without registration.
The South China Morning Post reports that China’s crack-down on any crypto-related business activity continues unabated. The CBAC was shut down by the relevant authorities, citing that it was an “illegal social organisation”, which “disrupted the orderly management of social organisations”.
All NGOs are heavily regulated in China, and blockchain technology is certainly supported, given that president Xi Jinping promoted more research and development into blockchain in 2019.
However, this was to no avail for the blockchain NGO in question. A previous statement from the CBAC had said that its aim was to: “work with regulatory agencies to jointly promote the orderly development of the blockchain industry”
Therefore, it was perhaps a surprise that such a ban was inflicted on the organisation. It has not responded with a comment on the situation as yet.
On the other hand, the CBAC did have some extremely influential members from the crypto sector, including Li Lin, founder of Huobi, the world's second largest cryptocurrency exchange by trading volume. Also, OKCoin exchange founder Xu Mingxing, who was the founding chairman of the council committee.
Advisors for the NGO were even more influential. They included Su Ning, the deputy governor of the People’s Bank of China, and and Wei Yingning, formerly vice-chairman of the China Insurance Regulatory Commission.
The CBAC former chairman, Guo Yuheng, said at a press event in 2020:
“The development of blockchain technology is inseparable from the continuous communication between innovators and regulators, and CBAC also looks forward to acting as the best bridge between the two parties,”
Formerly founded in China, the Huobi exchange is doing its best to comply with Chinese regulatory demands. This has included suspending bitcoin mining services, sales of crypto mining equipment, and derivatives trading on its platform.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.