Chinese authorities shut down local cryptocurrency exchange BISS, and arrested 10 people suspected of being involved in its operations.
Chinese authorities shut down local cryptocurrency exchange BISS and arrested 10 people suspected of being involved in its operations.
Local media Sohu reported on the actions undertaken by Chinese authorities on Nov. 22. However, the date at which the event itself took place is unclear.
The same day, founding partner of blockchain-based investment company Primitive Ventures Dovey Wan said on Twitter that the local cryptocurrency community had known of the development for two weeks. However, the news was published much later. She also claimed that the Beijing-based exchange in question is noteworthy:
“It’s a relatively known up-and-rising exchange.”
In a blog post published on Nov. 18, the exchange addressed user withdrawal issues. The firm also confirmed that Chinese authorities have halted 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 company claimed in the announcement that operations had halted while the authorities looked into the case to safeguard user interests. Lastly, the exchange also noted that it intends to cooperate fully with Chinese law enforcement.
China’s crackdown on local crypto exchanges
As Cointelegraph reported last week, Shenzhen authorities identified a total of 39 exchanges falling afoul of China’s cryptocurrency trading ban.
Furthermore, the Chinese technology capital of Shenzhen recently issued a warning against illegal activities involving cryptocurrencies, including cryptocurrency exchanges.