China Beijing Equity Exchange denies links with overseas cryptocurrency firms with similar name

CBEX, a government-run equity exchange facilitating the trading of stakes in state-owned enterprises, on Wednesday clarified that it has no affiliations with an overseas cryptocurrency firm with the same name.

The China Beijing Equity Exchange, a government-run equity exchange facilitating the trading of stakes in state-owned enterprises, on Wednesday issued a clarification, asserting that it has no affiliations with an overseas cryptocurrency firm sharing its abbreviated English name, CBEX Group.

In an official statement, the exchange, overseen by Beijing’s municipal government, underscored its lack of connection to the cryptocurrency-related business carried out by the overseas company, CBEX Group. The clarification’s primary objective was to dispel any potential confusion arising from the shared name and distinct business activities.

The China Beijing Equity Exchange categorically stated that it has never been involved in any trading activities associated with cryptocurrencies or other virtual assets. The primary focus of the exchange is on facilitating the trading of stakes in state-owned enterprises, and it has no involvement in the cryptocurrency market. The reason for the strong-worded clarification is still unclear, however, the authorities of China maintained a hostile policy towards cryptocurrencies, which is a potential contributor to the capital flight. In five years, the previous year was noted to be the first net annual capital outflow of China.

The name CBEX is used by several organizations, but no one has clear ties to crypto. A crypto token called CBEX, which was issued by a platform called CryptoBank Hybrid Exchange, is not traded on major exchanges actively. Both commercial and mining activities were included in restricted crypto activities. However, the ownership rights of such assets have been ratified in some court rulings.

The clarification comes at a time when the cryptocurrency industry is gaining increased attention globally, and potential confusion between entities with similar names could have legal and reputational ramifications. The China Beijing Equity Exchange’s proactive stance focuses on avoiding any misconceptions regarding its involvement in cryptocurrency-related activities and emphasizes its commitment to maintaining clarity and integrity. In December, a tough crackdown was called by the regulators regarding the use of cryptocurrencies. This was done especially for the use of the stablecoin Tether, as a tool for illegal trading of foreign exchange.

Through a statement published by the Supreme People’s Procuratorate and also the State Administration of Foreign Exchange, it was said by the prosecutors and the regulators that converting yuan to foreign currency with crypto as an intermediary or even vice-versa is illegal. They also added by stating that a heavy-handed crackdown on illegal cross-border financial activities would carry on.

As the cryptocurrency sector evolves, regulatory bodies and financial institutions are increasingly vigilant about ensuring transparency and preventing any possible misuse of names that could lead to misunderstandings in the market. This clarification by the China Beijing Equity Exchange corresponds with the broader trend of regulatory awareness and emphasizes the importance of distinct identities in the evolving financial landscape.