PBOC Shanghai HQ says to crack down on cryptocurrency trading

SHANGHAI, Nov 22 (Reuters) - Shanghai headquarters of the People’s Bank of China (PBOC) said it will crack down on cryptocurrency trading in the municipality, according to a statement from the PBOC on Friday.

The regulator also cautioned investors not to confuse blockchain technology with cryptocurrency, adding trading and financing through issuance of the cryptocurrency involves multiple risks.

The remarks by the PBOC’s Shanghai headquarters came after Chinese President Xi Jinping said last month that China should accelerate the development of blockchain technology, a digital ledger that forms the backbone of many cryptocurrencies such as bitcoin.

His remarks sparked a rush into the shares of firms engaged in, or believed to be engaged in, blockchain or digital currency-related businesses.

Reporting by Winni Zhou, Samuel Shen and John Ruwitch; editing by Jason Neely