China's CBEX Reiterates Anti-Crypto Sentiment

A government-operated equity exchange in China clarified that it has no affiliations with an overseas cryptocurrency firm sharing its abbreviated English name.

The China Beijing Equity Exchange, managed by the municipal government of Beijing to facilitate trading in stakes of state-owned enterprises, emphasized that it has no ties to the overseas entity known as CBEX Group, which is engaged in cryptocurrency-related activities. The exchange firmly stated that it has never engaged in trading activities involving cryptocurrencies or other virtual assets.

Protection of Trademark Rights

In its statement, the exchange asserted its exclusive ownership of the CBEX trademark within China. It warned that it would take legal action against any organization or individual found unlawfully using the name.

The motivation behind the emphatic clarification remains unclear. However, the Chinese government's longstanding hostility towards cryptocurrencies, driven by concerns over potential capital flight, provides context. Last year, China experienced its first net annual capital outflow in five years.

According to the South China Morning Post, various organizations utilize the CBEX name, none demonstrating clear connections to the cryptocurrency sector. For instance, a crypto token named CBEX, issued by a platform called CryptoBank Hybrid Exchange, sees minimal activity on major exchanges.

China's Stance on Cryptocurrency

China has imposed restrictions on both commercial cryptocurrency trading and mining activities. However, court rulings have sometimes upheld ownership rights over such assets.

In December, regulatory authorities announced a heightened crackdown on the usage of cryptocurrencies, mainly targeting stablecoin Tether, as a means for illegal foreign exchange transactions.

According to Financial Times, the Supreme People's Procuratorate and the State Administration of Foreign Exchange emphasized the illegality of converting yuan to foreign currency using cryptocurrencies as intermediaries or vice versa. They vowed to continue the stringent crackdown on illicit cross-border financial activities.

Nevertheless, Beijing remains committed to promoting the adoption of blockchain technology across various industries as part of its national agenda.

Photo: Microsoft Bing

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