PBOC prepares probe into Solana's Shanghai activities, SCMP reports

Key points

• SCMP reports the People's Bank of China is preparing to probe Solana's activities in mainland China
• A PBOC-linked outlet, Financial News, called Solana a virtual currency issuance platform offering issuance and trading services
• The Solana Accelerate event in Shanghai was suspended on 16 October, with law enforcement on site

An unnamed PBOC official said such activity is not permitted on the mainland and is classed as illegal under a notice issued in February. That notice, issued by eight government agencies and the PBOC, barred overseas entities and individuals from providing RWA tokenisation services to domestic entities in any form.

The reports follow the Solana Foundation's opening of a commercial office in Shanghai, which surprised crypto observers given China's long-standing anti-crypto stance. Binance co-founder Changpeng Zhao welcomed the move at the time, saying it was remarkable that Solana could advertise and secure an office in China, and some read it as a sign of opening. The launch included a light show in Solana's colours on the Citibank tower in Lujiazui.

On 16 October the Solana Accelerate event was suspended. Lily Liu, president of the Solana Foundation, said the venue had been overwhelmed by attendees and the event exceeded the number registered with local authorities. The report says the suspension, with law enforcement present, involved the PBOC directly, and investigations into the entities and individuals involved are pending.

What to watch: Investigations into the entities and individuals involved in the suspended Solana Accelerate event are pending, according to the report.

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