Chinese Authorities Investigate Staff of Crypto Data Provider Feixiaohao

The staff of the largest simplified Chinese cryptocurrency market data website Feixiaohao is suspected of being arrested by the Chinese police and has reportedly been under investigation for over six months. The exact reason for the investigation remains undisclosed.

Feixiaohao is often compared to the popular global cryptocurrency data platform CoinGecko and has been a key player in the crypto ecosystem in China, providing market data, price tracking, and other relevant information for various digital assets.

A Chinese website revealed that the main business model of Feixiaohao is to cooperate with exchanges and project parties, making profits through inclusion fees, annual frames, advertising resource sales, and more.

“But last year the boss lost a lot of money gambling in Malaysia. It was rumored that he was looking for a buyer in October last year, but it was not very successful,” it said.

Investigations have been ongoing for more than half a year, however, there hasn’t been any word from the Chinese authorities so far.

Most cryptocurrency exchanges that have partnered with Feixiaohao have reported difficulties in contacting the platform. Most of these exchanges rely on Feixiaohao for accurate and timely market data, which is essential for their operations, as per the information on the website.

Feixiaohao was launched in August 2017 and has served as a data aggregation platform that delivered real-time information on a large number of digital assets and exchanges. Despite its success, it had to operate within China’s strict stance on cryptocurrencies.

For a very long time, China has maintained a rigid stance on cryptocurrency activities in recent years, with numerous crackdowns on exchanges, mining operations, and other related activities. The nation had maintained a hostile relationship with the crypto sector since 2013, which is when it rolled out its first set of crypto restrictions.

Banning Initial Coin Offerings (ICOs) followed suit in 2017, followed Bitcoin mining being labeled as “undesirable.” In 2020, the Chinese government enforced stricter regulations on crypto exchange activities. Finally, in 2021, the nation banned crypto trading and mining altogether. This move led Bitcoin miners to either shut down completely or move to other crypto-friendly countries.

However, recently, speculations have been rife that China might consider unbanning crypto. Earlier this month, people like Justin Sun, founder of the blockchain-based platform TRON, shared a cryptic post, stating, “China unbans crypto. What’s the best meme for this?”

Sun also noted that this move could have a massive impact on the global crypto space. According to experts, China’s relaxed stance on crypto policies could mean an increase in trading volumes and prices.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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