China Crypto Roundup (Nov 23- Nov 30): Chinese City Suzhou to roll CBDC Testing, China Construction Bank Withdrew Proposed $3bn Blockchain Bond, Over $4.2bn Seized in PlusToken Crackdown

The top stories from the Chinese cryptocurrency sphere this past week include: China’s city of Suzhou reportedly set to roll out “red packets” trial for digital yuan, court documents show over $4.2bn seized in PlusToken crackdown.……

Chinese city Suzhou to roll CBDC testing

Suzhou, the city located in Jiangsu province of East China will play host to a shopping festival dubbed “Double 12” and gauge the DCEP’s feasibility following its earlier trials in Shenzhen.

The trial of digital yuan is expected to begin the next month. According to sources close to the matter, it is scheduled to occur on the 12th of December which is considered a very significant day in the republic of China. On the same day, the country celebrates its Double 12 shopping festival.

The form of the wider trial in Suzhou will be similar to the one that was carried out in Shenzhen in October, where about $1.5 million in digital yuan was given out to 50,000 residents as “red packets” via a lottery.

Many businesses in Suzhou’s Xiangchen district have already been installed with point-of-sales tech with near-field communication (NFC) in preparation for the event. These establishments will also have QR code capabilities that will allow lottery winners to spend their digital yuan winnings.

China Construction Bank withdrew proposed $3bn blockchain bond

On November 23, China Construction Bank’s branch in Labuan, a Malaysian offshore financial center informed Fusang Exchange, a Malaysian cryptocurrency exchange on November 20 that the bond issuance would not proceed.

According to the interviewees, the reason for withdrawal may be directly related to whether Bitcoin has monetary properties or not, or the way that the digital bond is issued, so if there are any subsequent problems, and the relevant system is not clear, there will be a lack of guarantee for disposal.

Gao Chengshi, a member of the Blockchain Committee of the China Computer Society, pointed out to us that there are two reasons for this cancel: first, it is directly related to whether bitcoin has monetary properties; second, “it should be related to the issuance method of the digital bond, if there are any problems in the issuance and transaction processes, and if the relevant system is not clear, there will be a lack of corresponding institutional guarantee for the disposal.”

Over $4.2bn seized in PlusToken crackdown

According to the latest reports coming from local news sources and provincial courts, more than $4.2 billion worth of various cryptocurrencies has so far been seized in the case PlusToken, one of the largest Ponzi schemes in China.

A total of 194,775 BTC, 833,083 ETH, 1.4 million LTC, 27.6 million EOS, 74,167 DASH, 487 million XRP, 6 billion DOGE, 79,581 BCH, and 213,724 USDT have been seized by Chinese law enforcement from seven convicts during the crackdown.

In its November 16 ruling, the court said that it will begin processing the seized cryptocurrencies according to local laws. Many have assumed that this means that the local police authorities will begin selling off the seized funds, with all of the proceeds and gains from the selloffs forfeited to the national treasury.

According to the latest ruling, the PlusToken operation officially started in May 2018 and advertised a non-existent crypto arbitrage trading platform. It promised users attractive daily payouts but would require them to deposit at least $500 worth of crypto assets in order to participate.

Publication date: 
11/30/2020 - 12:15
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.