THE government has been cracking down hard on illegal transactions related to virtual currency trading, the Economic Information Daily reported yesterday.

The country’s financial regulator has demanded all-around inspection and solving of illegal actions involving speculation in virtual currency using the concept of blockchain, the newspaper said, quoting a source close to the Office of the Leading Group for the Special Campaign against Internet Financial Risks.

Payment institutions are required to step up investigations and cleanup the payment and settlement process, an official circular showed.

Trading venues of virtual currency will be overhauled, said announcements issued by Shanghai and Shenzhen, among other regions.

“Blockchain does not equal to virtual currency, and the policies to crack down on virtual currency and initial coin offerings (ICOs) remain unchanged,” said the source. “The country will thoroughly curb various types of risks, which requires immediate crackdown once they are found.”

The Chinese regulator has warned against the backsliding of illegal virtual currency trading activities, especially those in advertising blockchain innovation and application.

A long-term mechanism will be built to further overhaul virtual currency and ICOs and guard against the resurgence of illegal transactions.

In 2017, China rolled out a string of regulation measures on virtual currency trading and has warned about the risks of related transactions.

China has deployed a comprehensive plan that requires authorities to conduct a thorough inspection on new developments regarding blockchain and cryptocurrency activities, according to an article in Beijing Youth Daily on Sunday.

The regulator also urged local authorities to step up efforts against illegal blockchain-related activities through measures including offering rewards to citizens to provide valid information.

The central bank’s Shanghai branch also renewed its commitment to clamp down on cryptocurrency exchanges in the city, according to an official announcement Friday.

The regulator said it will continue to adopt stringent measures to closely monitor entities involved in the space to address risks in a timely manner.

(SD-Agencies)