China's Central Bank Prepares Probe Into Solana's Activities

The People's Bank of China is getting ready to investigate Solana's activities on Chinese soil, the South China Morning Post reports. Financial News, a financial outlet tied to the central bank, described Solana as a virtual currency issuance platform and pointed to major digital asset issuance and trading services running on its blockchain. An anonymous PBOC official said those activities carry no authorization in China and are illegal under a notice published in February.

That February notice, issued by eight government agencies and the PBOC, deals with the tokenization of real-world assets, or RWA. It states that foreign entities and individuals cannot illegally provide such services to national entities. Authorities say they want to regulate services tied to these assets and the relationships between foreign operators and local players.

The scrutiny lands after the Solana Foundation opened a commercial office in Shanghai — a move that startled the crypto world given Beijing's hard line on digital assets. Binance co-founder Changpeng Zhao highlighted how surprising the presence was, along with the publicity push inside China. The inauguration was staged in the Lujiazui district, where a light show threw Solana's brand and colors across the glass facade of the Citibank tower. The office opening, the article notes, did not amount to blanket authorization for crypto activity.

Then came the suspension of Solana Accelerate on October 16. Solana Foundation president Lily Liu said the venue could no longer hold all registered attendees, with attendance exceeding the number declared to authorities. Per the SCMP report, law enforcement's intervention in that shutdown directly involved the PBOC, and an investigation into entities and individuals linked to the event is already underway. Those details give a capacity problem a far wider regulatory reach.

The Accelerate program was pitched around technology, with sessions on artificial intelligence, robotics and physical AI, plus emerging markets and local business development. According to the reported details, it steered clear of crypto trading and speculation topics.

The anonymous official sketched what comes next: the central bank plans to work with competent services and local authorities. Controls will target national virtual currency operators and local entities tied to foreign issuance or trading platforms, with the stated aim of curbing commercial activity around virtual currencies and preserving financial order.