Spain made a surprising move against several crypto exchanges, including giants like Huobi and Bybit. Тhe Spanish National Commission for Securities Markets (CNMV) issued an official warning on a total of twelve exchanges, also including token issuer N2 Group and digital assets trading platforms such as Dsdaq Market and Markets Cube.
“According to the CNMV, these institutions are not registered in the corresponding registry of this Commission and, therefore, are not authorized to provide investment services or other activities subject to the CNMV’s supervision,” Spain’s financial regulator wrote.
The watchdog also noted that the companies under CNMV’s crosshair would be sanctioned if they do not register. However, CNMV’s actions are limited, as the commission does not have the authority to ban the companies’ operations in Spain. Nevertheless, if companies fail to abide by the regulator’s rules, they could face court-ordered business restrictions.
Interestingly, one of the warned exchanges – Bybit, received a similar warning from the UK Financial Conduct Authority (FCA) in February 2021, while another warning came from the Japan Financial Services Agency (FSA) in May.
Meanwhile, China sets yet another move into tightening the grip on crypto-related business operations, as the Shenzhen branch of the People’s Bank of China (PBOC) put 11 companies on a black list their involvement in suspected illegal cryptocurrency activities as part of a special campaign to show a zero-tolerance attitude to cryptocurrency trading.
Shenzhen, once referred to as a crypto mining equipment hub, one of the key bases for China’s digital token investment community, is now 180-degrees on its stance on cryptos. Financial authorities conducted several campaigns to halt anything remotely connected to cryptocurrency since digital tokens like Bitcoin are perceived as a threat to the country’s financial stability.
The Chinese city’s actions are not the first crackdown on crypto-related companies, as in February 2021, Shenzhen shut down eight companies involved in distributing wealth management products backed by Bitcoin, promoting digital tokens as investment products, as well as offering overseas cryptocurrency projects to Chinese investors. Illegal cross-border trading of foreign currencies and stocks was also on PBOC’s Shenzhen branch action list.
The latest Shenzhen moves are in sync with China’s State Council Financial Stability and Development Committee's crackdown on Bitcoin mining and trading in the country to mitigate financial risks.
The result - Huobi and OKCoin canceled the business license registration of their respective subsidiaries in Beijing, joined by Bishijie, an online community for Chinese cryptocurrency investors, which stopped its website and app from operation in mainland China.