A new clamp down on crypto trading has been launched by the Chinese Central Bank in Shanghai on Friday.
The bank will look to team up with local financial authorities in order to monitor crypto trading operations in Shanghai but will also be rolled out in Beijing and Shenzhen.
The bank has outlined that they are specifically looking to inspect companies that offer IEOs (initial exchange offerings) and ICOs (initial coin offerings) as a service.
Investors can now report any individual or organisation that uses or promotes any of these services.
The Chinese central bank said yesterday that they want to “nip the small and early-stage businesses in the bud“ in order to protect investors.
The Shanghai office of Binance was reportedly raided as well but this was vehemently denied by CEO Chaopeng Zhao.
The nationwide crackdown has shocked many as China seemed to taking a gentler line in relation to digital assets.
Ever since President Xi announced that China would “seize the opportunity“ of Blockchain only a month ago there had been Speculation about whether Beijing would adopt a softer approach in relation to regulations in the sector.
This is the first time since September 2017 that there has been had been such a strong move against crypto in China.
At that time. the news caused bitcoins price to collapse and slip into a two month bear market.
Bitcoin’s price has dropped from $8200 to $6900 since the announcement of the government campaign on Friday.