BREAKING LEAKED: Shanghai Government Declares War on “Shitcoins”


An (unverified) document reportedly compiled by the Shanghai government and leaked on social media has apparently gone viral on the Chinese crypto community. According to a Twitter user that goes by the name @Crypto_Even the document has reportedly declared war on “shitcoins”.

The document targets cryptocurrency transaction providers in China, Fundraising via ICOs and other blockchain instruments and service providers for overseas registered ICOs.  Detailed info can be found in the translated document below. However, the document source has not been verified.

30 morpher 351x185 - BREAKING LEAKED: Shanghai Government Declares War on "Shitcoins"Airdrop: Morpher is Giving Away 30 USD to Launch their Trading Platform.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.

======== Document starts ========

Notice on launching the regulation of virtual currency trading venues

District Rehabilitation Office

Recently, with the promotion of blockchain technology, virtual currency speculation has shown signs of rising. In order to prevent the resurgence, please rectify the districts’ measure of the following virtual currency-related activities according to the relevant arrangements. Each district regulation office is requested to conduct the following virtual currency-related activities within the jurisdiction.

  1. Organizing virtual currency transactions in the People’s Republic of China;
  2. Issuing “XX” currency and “XX” for the reason of “blockchain application scenario landing”. Virtual currency in the form of a chain, etc, raising funds or virtual currency such as Bitcoin or Ethereum.
  3. Providing declarations for ICO protects and virtual currency trading platforms registered overseas, including transmission, drainage, agency trading, and other services.

Please complete the inspection work before November 22. Once finding companies engaged in the above virtual goods, internet companies with currency-related activities will be immediately submitted to the Municipal Financial Stability Joint Office.
The Financial Supervisory Authority and the Shanghai Headquarters of the People’s Bank of China, and urged enterprises to immediately rectify and withdrawal.

Hereby notify.

Contact: Municipal Financial Stability Joint Office: Xu Shaohui, 23116331, 23116323(Fax), People’s Bank of China Shanghai Headquarters: Zhou Qingwu, 20637253, 20097248 (Paw) City Financial Stability Office
People’s Bank of China Shanghai Headquarters Mutual Gold Treatment Office
(CitY of the local financial supervision bureau)
(Financial Market Management DepartMe.
November 14, 2019

=========Document ends==========

We will update this page if we find a source for the document. However, Shanghai is just a region and even if the news is confirmed the impact might be minimal.


About Author

Ethan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past. Also, pro-local, pro-global and anti-national.

Disclaimer: All content found on is only for informational purposes and should not be considered as financial advice. Do your own research before making any investment. Use information at your own risk.

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