PBOC probes Solana after Shanghai event shut down

China's central bank has opened an investigation into Solana, according to a report cited by China's Financial Times. An official from the People's Bank of China said further in-person Solana promotional events in the country have been halted. The bank, together with local regulatory bodies, will also look into Solana and any relevant persons.

The report states that Solana's activity as a virtual currency provider is illegal under China's 2021 crypto laws. The same provisions would cover its promotions, the report adds.

Last October, Solana tried to run a week-long promotional event in Shanghai. It was meant to mark what the report describes as an apparent acquisition of an office in the city's Pudong district. The company cancelled Solana Accelerate China at the last minute, citing logistical considerations, while visitors saw Chinese police arriving.

In the days before the cancellation, a large Solana logo was projected onto the side of Shanghai's Citigroup Tower. A Solana event was also held on a riverboat.

Solana's token was priced at $90 at the time of writing, the report says. That is down 15% since the promotional event was shut down on 16 October. Over the past year the token has fallen by almost 28%, with a market cap of $53 billion.

China has taken a restrictive line on crypto since 2013, when it introduced anti-BTC legislation. A 2021 crackdown made using crypto in the country illegal. This year's legislation keeps that ban and adds a provision barring offshore Chinese entities and individuals from offering crypto services to people in China. New restrictions on stablecoins and real-world asset tokenisation were also introduced.