China seems to be further expanding its effort to curb illegal activities in the country, cracking down on organizations and companies it deems are working against the current laws. According to the latest notice from the Chinese Ministry of Civil Affairs, there has been a whole new set of companies and organizations that have been suspected of illegal activities. They have all been put on a list cautioning the public to beware of interacting with them, as they posed a risk of fraud.
The Ministry of Civil Affairs has conducted yearly investigations aimed at combating and rectifying illegal social organizations. Throughout the past few years, civil affairs departments have disposed of a large number of organizations and companies that have been acting outside of the law, claiming the efforts “purified” the environment and achieved excellent social results.
According to the official notice, ten new organizations have been added to the list. The organizations include the China Aesthetics Research Association, China-Africa Cultural Friendship Association, China Patriotic Literary Artists Association, China Volunteer Association, China Cultural Construction Committee, the International Chinese Arts Association, China Party History Research Association, Chinese Yu Clansmen’s Association, and the China Composite Talent Training Association. However, despite the major organizations named in the list, its the China Blockchain Committee that caused the biggest stir in local media.
The China Blockchain Committee is an organization that set out to copy the National Blockchain and Distributed Accounting Technology Standardization Technical Committee, which is often referred to as the China Blockchain Committee for short. The Ministry of Civil Affairs has called on the public to log onto the Chinese social organizations government services platform and file complaints against particular companies or provide evidence of the organizations’ wrongdoings.
The effort represents an extension of China’s larger move to crack down on illegal activities in the country. Earlier this month, the Chinese State Council unveiled a new decree that’s set to prevent “illegal fundraising in the country.” According to local reports, the new laws were designed to promote healthy economic development in the country and maintain social stability. The decree bans any type of fundraising that promises to pay out interest or give out other types of investment returns, effectively making initial coin offerings (ICOs), initial exchange offerings (IEOs), and security token offerings (STOs) illegal in the country. According to the official document, the baseline of the government’s prevention efforts will be to conduct extensive investigations that would enable them to crack down on illegal fundraising acts while they’re still in their very beginnings. To do that, the country will establish a comprehensive management system that will enable it to track and monitor both the traditional financial markets and the digital asset industry.
Many believe that the extensive efforts to curb illegal activities in the financial markets are set to lay the foundation fo the launch of the country’s upcoming digital yuan. China’s earlier ban on cryptocurrency trading has already cleared the market of competition, leaving the government free to experiment with digitizing its national currency.