June 16, 2024
Crypto

No bitcoin at Beijing equity exchange: CBEX denies links to crypto firm with same name


A Chinese government-run equity exchange clarified on Wednesday that it has no links to an overseas cryptocurrency firm that shares its abbreviated English name.

The China Beijing Equity Exchange, a bourse run by the municipal government of Beijing for trading stakes in state-owned enterprises, said in a statement that it has no connection to an overseas company named CBEX Group, which conducts cryptocurrency-related business. It added that it has never carried out any trading activity related to cryptocurrencies or other virtual assets.

The exchange also noted that it owns all rights to the CBEX trademark in China, saying it would take action against any organisation or individual illegally using the name.

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It is not clear what prompted the strongly-worded clarification. However, Chinese authorities maintain a hostile policy towards cryptocurrencies, a potential contributor to capital flight. Last year marked China’s first net annual capital outflow in five years.

The CBEX name is used by multiple organisations, but none with clear ties to crypto. A crypto token called CBEX, issued by a platform named CryptoBank Hybrid Exchange, is not actively traded on major exchanges.

Restricted crypto activities in China include both commercial trading and mining activities, but ownership rights of such assets have been upheld in some court rulings.

In December, regulators called for a tougher crackdown on the use of cryptocurrencies, especially the stablecoin Tether, as a tool for illegal foreign exchange trading.

In a statement published by the Supreme People’s Procuratorate and the State Administration of Foreign Exchange, prosecutors and regulators said that converting yuan to foreign currency with crypto as an intermediary, or vice versa, is illegal. A “heavy-handed crackdown” on illegal cross-border financial activities would continue, they added.

Still, Beijing continues to push a national agenda for adopting blockchain across a number of industries.

Last month, the Ministry of Industry and Information Technology said that China will draft a national Web3 development plan that is “in line with the country’s conditions”, saying that an upcoming draft will seek to encourage “new business models” involving non-fungible tokens (NFTs) and decentralised applications.



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