Author: CryptoBazi Analyst
Published On: 1/9/2024, 8:46:56 am
Feixiaohao, a major player in China's cryptocurrency data industry, is under heavy scrutiny from the Inner Mongolia police, resulting in the arrest of key executives. The investigation, ongoing for over six months, is rumored to revolve around compliance issues and potential disputes related to the platform’s business operations.
Since its inception in 2017, Feixiaohao has become a cornerstone in China’s crypto ecosystem, providing real-time data on digital assets and exchanges. Often referred to as the "Chinese CoinGecko," the platform has garnered a substantial user base by offering detailed information on over 14,000 cryptocurrencies.
Despite its success, Feixiaohao now faces severe legal challenges. Reports suggest that the investigation may be linked to the platform’s promotion of questionable exchanges and fraudulent tokens—issues that have plagued the broader crypto market. One notable controversy involved Feixiaohao’s advertisement of the Squid Game token in 2021, which later turned out to be a scam.
On August 28, cryptocurrency journalist Colin Wu reported that the ongoing investigation by Inner Mongolia police has raised significant concerns about Feixiaohao’s operations and its adherence to Chinese law. Many of the platform’s exchange partners have reportedly been unable to reach the company, adding to the uncertainty surrounding its future.
Despite these challenges, Feixiaohao continues to update its website, with recent activity as of August 30, 2024. This raises questions about the current management of the platform, as there are speculations that the original team may have been replaced by a new entity that acquired control of the platform’s codebase.
Feixiaohao’s legal troubles come at a time when China has been increasingly cracking down on the cryptocurrency sector. Since the People’s Bank of China (PBoC) imposed a comprehensive ban on cryptocurrency transactions in September 2021, the regulatory environment has become increasingly hostile to crypto-related businesses.
Despite these stringent measures, Feixiaohao managed to maintain a significant user base, attracting approximately 200,000 monthly visits as of July 2024, with 23% of the traffic coming from within China. This ongoing demand for cryptocurrency information highlights the tension between public interest in digital assets and the government's efforts to suppress crypto activities.
The investigation into Feixiaohao underscores the broader challenges facing the crypto industry in China, where authorities have ramped up enforcement actions against illegal activities tied to digital assets. In 2023 alone, over 42,000 individuals were prosecuted for their involvement in fraudulent cryptocurrency schemes. Despite these efforts, crypto-related crimes remain a persistent challenge for Chinese authorities.
In a related development, the Industrial Bank, one of China’s major banks, announced incentives to promote the use of the digital yuan. Customers who use the central bank digital currency (CBDC) for various transactions can earn carbon points, which can be redeemed for travel credits and shopping vouchers. Since the digital yuan's launch in 2020, the bank has facilitated over $41 billion in transactions through nearly 7.3 million digital wallets.