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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Feixiaohao, a leading cryptocurrency market data provider in China, is currently under investigation by the Inner Mongolia police. The investigation, which has reportedly been ongoing for over six months, has led to the arrest of several key company executives.
While the precise reasons behind the investigation are undisclosed, there are indications that it may involve compliance issues or disputes related to the platform’s business practices.
Feixiaohao has been a prominent player in China’s crypto ecosystem since its launch in 2017. It offers real-time data on digital assets and exchanges and is a major resource for cryptocurrency enthusiasts in the country.
Feixiaohao Investigation: What Crime Have They Committed?
Feixiaohao, often dubbed the Chinese version of CoinGecko, was established in August 2017 and quickly became the largest simplified Chinese crypto market data website, providing extensive information on over 14,000 cryptocurrencies.
Despite its success, the platform now faces significant legal challenges.
Reports suggest that Inner Mongolia authorities may investigate Feixiaohao for promoting dubious exchanges and scam tokens, a persistent issue within the broader crypto market.
Notably, in 2021, the platform was scrutinized for advertising the Squid Game token, a cryptocurrency inspired by the Netflix series that eventually turned out to be a scam.
As cryptocurrency journalist Colin Wu reported on August 28, the Inner Mongolia police investigation has raised concerns about the platform’s operations and compliance with Chinese laws.
Multiple sources, including Wu’s channel, Wu Blockchain News, indicate that many of Feixiaohao’s exchange partners have been unable to contact the company, adding to the uncertainty surrounding its future.
Despite these legal troubles, Feixiaohao continues to operate and update its website, with the most recent articles dated August 30, 2024.
This ongoing activity raises questions about the platform’s current management, as reports suggest that the team running Feixiaohao might not be the original group but rather a new entity that acquired access to its codebase and is attempting to continue operations under the same brand.
China’s Crypto Regulatory Landscape
Feixiaohao’s legal issues come at a time when China has been tightening its grip on the cryptocurrency sector.
Since the People’s Bank of China (PBoC) imposed a blanket ban on cryptocurrency transactions in September 2021, the regulatory environment has grown increasingly hostile for crypto-related businesses.
Despite these stringent measures, Feixiaohao managed to sustain a significant user base, with approximately 200,000 monthly visits as of July 2024, 23% of which originated from China.
There is ongoing demand for cryptocurrency information and data within the country, even as official policy seeks to curb digital asset activities.
The investigation into Feixiaohao reflects the broader challenges facing the crypto industry in China, where authorities have ramped up enforcement actions against illegal activities associated with digital assets.
Over 42,000 individuals were prosecuted for involvement in fraudulent cryptocurrency activities in 2023 alone. Despite these efforts, crypto-related crimes continue challenging the authorities, and crypto operations never stop.
Earlier this year, Industrial Bank, a major Chinese bank, announced that it is incentivizing digital yuan adoption by offering carbon points to customers who use the central bank digital currency (CBDC) for retail payments, fund purchases, and credit card payments via its app.
Customers can earn carbon points for eco-friendly actions such as using public transportation, recycling, and participating in tree-planting efforts. These points can be redeemed for travel card credits and shopping vouchers.
Since the digital yuan’s official debut in 2020, Industrial Bank has opened nearly 7.3 million digital wallets for its customers, facilitating over $41 billion in transactions.
