China: Central bank prepares investigation into Solana activities

The People’s Bank of China could open an investigation into Solana’s activities in the country and links with local actors. This initiative comes after several events organized in Shanghai, including an interrupted meeting in October. It revives questions about the place of foreign crypto companies in a market subject to strong restrictions. According to press reports, authorities want to examine services related to digital assets and the players involved.

Beijing examines crypto services associated with Solana

According to the South China Morning Post, the People’s Bank of China (PBOC) is preparing an investigation into Solana’s activities in China. Solana is among the main crypto projects in the country. This approach is part of a restrictive regulatory framework. Foreign companies that develop local activities remain monitored.

The Financial News, a financial media linked to the central bank, has describe Solana as a platform for issuing virtual currencies. The media also mentioned services for issuing and trading major digital assets on its blockchain. An anonymous PBOC official believes that these activities have no authorization in China. He considers them illegal in view of a notice published in February.

This text is about the tokenization of real-world assets, or RWA. It clarifies that foreign entities and individuals cannot illegally provide such services to domestic entities. Eight government agencies and the PBOC issued this notice. The authorities intend to regulate the services linked to these assets and the relations between foreign operators and local players.

The Shanghai office at the heart of the questions

Information on this investigation comes after theopening of a commercial office of the Solana Foundation in Shanghai. This establishment surprised the ecosystem, given Beijing’s hard line towards cryptocurrencies. Several players in the sector then welcomed this initiative. Changpeng “CZ” Zhao, co-founder of Binance, particularly highlighted the astonishing nature of this presence and the advertising carried out in China.

The inauguration benefited from a staging in the Lujiazui district. A light show projected the Solana colors and brand onto the glass facade of the Citibank Tower. These images have fueled the idea of ​​a possible relaxation towards digital assets. Opening an office did not necessarily mean that crypto activities received general authorization.

The situation changed with the suspension of Solana Accelerate on October 16. Lily Liu, president of the Solana Foundation, explained that the place could no longer accommodate all those registered. Attendance exceeded the number declared to the authorities. She then indicated that the organization was suspending the meeting in order to better respond to the size of its community.

Suspended event attracts authorities’ attention

According to the report from the South China Morning Post, the intervention of the police during this suspension would have directly involved the PBOC. An investigation into entities and individuals linked to the event is also reportedly underway. These elements give broader regulatory scope to an incident presented as a capacity problem. They also place Solana’s activities in the debate on the application of Chinese rules.

The Solana Accelerate program, however, focused on technological subjects. The discussions were to notably address artificial intelligence, robotics and physical AI. Emerging markets and the development of local businesses were also among the themes announced. According to reports, the event avoided the topics of cryptocurrency trading and speculation.

The anonymous official cited in the report outlined next actions. The central bank intends to work with the relevant services and communities. The controls will target national operators of virtual currencies and local entities linked to foreign issuing or trading platforms. This cooperation must curb commercial activities linked to virtual currencies and preserve financial order.

At this stage, the information describes an announced investigation and verifications targeting several actors, without detailing their conclusions. What happens next will depend on the measures taken by the authorities and their real scope. For Solana, the issue concerns the clarification of the framework applicable to its activities in China. The file could also clarify the extent to which foreign companies can establish local commercial ties without violating existing rules.