Chinese Crypto Data Provider Feixiaohao Faces Police Investigation, Executives Arrested
Chinese crypto data and news provider Feixiaohao, often referred to as the ’Chinese CoinGecko,’ is under investigation by local police in Inner Mongolia. The investigation has reportedly been ongoing for over six months, and multiple key executives have been arrested. While the specific reasons for the investigation remain undisclosed, it likely pertains to China’s stringent cryptocurrency regulatory framework and ongoing crypto ban. Despite these issues, Feixiaohao, launched in 2017, remains operational, with about 200,000 users as of July. This scenario raises critical questions about the future viability and legality of crypto data services in mainland China, impacting the broader cryptocurrency market by inducing uncertainty.
Bearish
The ongoing police investigation and arrests of key executives at Feixiaohao inject significant uncertainty into the Chinese crypto market. Traders might perceive this as an escalation in regulatory actions against cryptocurrency-related activities, potentially leading to stricter enforcement of crypto bans and reduced confidence in the market’s stability. This situation is likely to exert downward pressure on local crypto projects and services, causing negative sentiment to proliferate among investors.