China’s Law Enforcement Authorities Steps up Vigilance Against Cryptocurrency Operations Overseas


The law enforcement authorities in China has stepped vigilance on cryptocurrency activities abroad. According to the recent reports, the Public Information Network Security Supervision Agency of China that works under the Public Security Ministry is closely monitoring the activities of domestic platforms that have shifted operations abroad and overseas cryptocurrency exchanges.

The latest stunt of the Chinese Government is to safeguard the Chinese investors from falling into the net of pyramid schemes, money laundering and other types of investment fraud. It is on the backdrop of the ban imposed by the People’s Bank of China in September 2017 on ICO. The Bank also ordered the shutdown crypto currency trading.

The crypto currency exchanges and ICO organizers have shifted their operations after the crackdown by the Chinese government. However, the regulators in China have warned the investors about the risks involved in the trading of overseas cryptocurrencies and continuously monitoring the activities of cryptocurrency exchanges.

According to CoinDesk, the National Internet Finance Association of China came out strongly against the activities of disguised ICO activities overseas in January 2018. The agency said despite shifting the operations of ICO overseas, they are easily available to Investors in China.

According to a statement issued on January 19, 2018, The Ministry of Public Security of China has informed the public that regulator will initiate proceedings to crackdown on the Pyramid Schemes involving the operations of cryptocurrency.

Chinese Police Implement Strict Measures to block access to overseas cryptocurrency trading

Apart from banning the digital currency exchanges, the country is establishing a new front to block access to the digital currencies overseas. As a result, the regulators will scrutinize the businesses online bank accounts and Chinese bank operations as well as individuals, who are suspected of supporting the overseas cryptocurrency operations.

The Chinese police may restrict such entities and individuals access to the national financial system as well as freezing the assets. It helps to prevent the avenues available to the Chinese investors and prevent the possible fraud involving digital assets. The new measures will prevent the tax evasion, money laundering and excessive speculation about cryptocurrencies.