China Crypto Crackdown: Chenggu County shuts down unregistered crypto training center

Chinese Crypto Crackdown is now extended into rural China with the latest shut down of Chenggu County’s “National Blockchain Application Operation Vocational Qualification Training Center”, an illegally operating cryptocurrency training center.

Cryptocurrency investment began to spread in rural China, and a cryptocurrency training center was closed in Chenggu County, Shaanxi Province, China. https://t.co/lYRYYzW9R9

— Wu Blockchain (@WuBlockchain) September 16, 2021

The crypto training center was closed on September 13, as the Economic Investigation Brigade of Chenggu County Public Security Bureau of Hanzhong City, in collaboration with the Shangyuanguan Police Station and the Industrial and Commercial Bureau completed the investigation into the fraudulent organization.

According to authorities, the scammer had set up shop in a residential “private house in the ancient town of Shangyuanguan”. The police revealed that they caught over ten suspects who were allegedly involved in illegal pyramid schemes. However, the Economic Investigation Brigade, the Bureau of Industry and Commerce of Chenggu County ordered the shutdown of the illegally operating training center on September 13.

China’s crypto crackdown reaches smaller districts

China’s crypto crackdown has been spreading locally. Earlier this week, Hebei Province’s authorities announced initiating the launch for investigation and crackdown of cryptocurrency mining and trading from October. The authorities revealed their plans through a blog post that identified virtual currencies as a national threat in lieu of their ecologically unsustainable, and economically as well as socially disruptive nature.

The authorities argued that cryptocurrency mining consumes massive electricity which stands against China’s aim for “carbon neutralizing carbon peaks”. Along with being unsustainable, cryptocurrency mining also distorts the operations of financial order in the country, causing economic and social uncertainty.

“Its exchange and trading are highly disruptive to China’s financial order, and its financial risks are hidden, and most of them are related to black and grey production. Its proliferation and spread will seriously affect economic and social development and directly threaten national security.”, stated the article.

Hebei Province followed the footsteps of Lanzhou, Gansu that announced gathering a task force to conduct inspections on Bitcoin, along with other cryptocurrency mining companies. The district revealed that big data companies will face surprise inspections by this task force, along with mining firms that will be warranted to sign the ‘Commitment Letter for the Elimination of Bitcoin and Other Virtual Currency Mining Business Activities’. The companies will further pledge against carrying out any activities related to virtual currencies, such as Bitcoin mining, and trading.

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Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0