Headline: China’s central bank halts Solana Shanghai event, opens probe into local promoters China’s central bank has confirmed it intervened to stop a Solana promotional event in Shanghai and will investigate domestic entities and individuals involved in the blockchain network’s marketing activity, according to an exclusive Financial Times report and comments from a People’s Bank of China (PBOC) official. What happened - Regulators discovered Solana had partnered with local parties to advertise its brand in China, including a large display on the exterior of Citigroup Tower in Shanghai’s Lujiazui financial district. The PBOC said that campaign amounted to cryptocurrency promotion, which is banned under China’s rules. - The central bank coordinated with local financial regulators, police and market supervision authorities to cancel the planned Solana Accelerate China 2026 event in Shanghai. Organizers had planned a series of gatherings across Shanghai, Hangzhou, Shenzhen and Beijing from October 16–22, covering blockchain infrastructure, AI, payments and other applications. - The Shanghai event was abruptly suspended on October 16 after attendees reportedly struggled to enter the venue; several law enforcement officers were seen and registered participants were reportedly left waiting outside. Organizers initially cited logistical issues and later postponed the event. Responses from organizers and industry - Solana Foundation President Lily Liu posted on X that registrations had “quadrupled overnight” after publicity, far exceeding the attendance cap registered with local authorities, forcing a postponement to comply with local requirements. - Binance co-founder Changpeng Zhao questioned organizers’ local regulatory awareness on X: “Sad to see. Looks like they really didn’t know the local policies?” He referenced a similar disruption at a Solana event in Shenzhen less than a year earlier. Regulatory rationale - The PBOC official characterized Solana as a major cryptocurrency issuance platform and said its native token SOL fits China’s definition of virtual currency. The official also argued that Solana’s infrastructure facilitates issuance and trading of other tokens, including USDT, bringing promotion of the network within the scope of China’s February 2026 regulatory notice. - That February notice—issued jointly by the PBOC and seven other agencies—reaffirmed that virtual currencies (including Bitcoin, Ethereum and stablecoins) do not have the legal status of China’s sovereign currency and reiterated prohibitions on unauthorized cryptocurrency trading, token issuance and related services in mainland China. It also tightened rules preventing domestic companies and individuals from assisting overseas crypto platforms in serving mainland customers and limited certain yuan‑pegged stablecoin and tokenization activities. - The PBOC official added that cryptocurrencies currently fall short on customer identification and anti‑money‑laundering requirements and that trading activity can fuel market speculation—factors the regulators say justify stricter enforcement. Wider context and next steps - China’s stance on crypto has tightened over the past decade, with a 2013 statement that Bitcoin cannot circulate as legal currency and 2021 moves labeling crypto trading and related services as illegal financial activities. The February 2026 notice extended scrutiny to domestic intermediaries that help overseas platforms reach Chinese users. - The latest intervention follows other recent Chinese actions targeting crypto-related risks, including late‑October calls for stronger measures against the use of digital assets in corruption and illicit finance. - The PBOC said it will work with local governments and other departments to pursue cryptocurrency-related businesses operating in mainland China, with enforcement efforts focused on domestic crypto dealers and China‑based entities linked to overseas issuance and trading platforms. The central bank did not name specific firms or announce penalties at the time of its statement. Implications - The move underscores that promotional activities tied to foreign blockchain projects remain high-risk in China’s tightened regulatory environment. Companies planning on-the-ground outreach in mainland China will likely face heightened scrutiny, and organizers should ensure any local activity conforms strictly to regulatory limits. Source: Exclusive reporting by the Financial Times; public posts from Solana Foundation President Lily Liu and Binance co-founder Changpeng Zhao; statements attributed to a People’s Bank of China official. Read more AI-generated news on: https://app.chaingpt.org/news