One of the biggest stories in the cryptocurrency industry in the last week was the alleged closure of Binance’s Shanghai office by Chinese authorities which have been denied by the company as false. While the details surrounding that saga are still coming out, Binance has stated categorically that they were not closed down in Shanghai and stated that a Shanghai office does not exist to start with. While china famously hasn’t been very pro-cryptocurrency, there a number of firms that operate inside of it.
According to a post from November 20, 2019, Chinese authorities have raided the offices of local exchange DISS and have arrested 10 of its employees for being involved in its operations.
Even though the news was reported just recently, CEO of blockchain-based investment company Primitive Ventures Dovey Wan stated that the local crypto community within China had known of this development for about two weeks and that the company was of some notoriety and were a relatively up and coming exchange.
The exchange had published a blog post on November 18, 2019, in which they addressed user withdrawal issues and confirmed that Chinese authorities were shutting down their operations.
“According to market sources, it is understood that BISS’ operations have been halted following an enquiry by China’s regulatory authorities around its services offered to users, which may not be aligned with capital controls regulations in China,” the blog post says.
The exchange, in the blog post, said that operations would be on hold for a while to allow Chinese authorities to investigate for the protection of users and that they fully intended to comply with the investigation. This comes just after Shenzhen authorities had identified at least 1,302 exchanges the were in violation of China’s crypto trading ban and it seems a general crackdown is in place at the moment.
It’s also interesting to note that China is currently in the process of developing their own national digital token and it seems that they intend for their own cryptocurrency industry to be a homegrown affair without much outside interference and even though China has been favorable towards blockchain and crypto mining, it seems their stance will not be changing anytime soon.