The People’s Bank of China (PBOC) has reportedly opened an investigation into Solana after a promotional event in Shanghai was halted and deemed illegal. According to a Chinese Financial Times report relayed by Protos, the central bank and several local regulators are examining the project and the individuals involved, within a legal framework that remains hostile to cryptocurrencies.
🔑 Key takeaways
- The probe is reported by Protos and the Chinese Financial Times, with no official PBOC statement so far.
- The « Solana Accelerate China » event was halted, according to Protos, or postponed, according to an email sent to participants.
- Local police reportedly showed up at the venue, with no official explanation from authorities.
- SOL trades at $90, down 15% since the interruption, with no causal link established.
What the sources report
According to a Chinese Financial Times report picked up by Protos, the People’s Bank of China has opened an investigation into Solana and into the individuals who may be involved. An unidentified PBOC official said the bank had put an end to Solana promotional events that were still scheduled to take place in mainland China.
However, the sources do not include an official PBOC announcement detailing the scope of the probe, its legal basis, its duration or the identity of the people targeted. That gap matters: the story rests on leaks, eyewitness accounts and media pickups rather than on a document that would clarify whether the procedure is criminal, administrative or simply a request for information.
The interrupted event: « Solana Accelerate China »
The event was scheduled for Friday morning as part of a week of activities across several major cities in mainland China. It was meant to celebrate the opening of a Solana office in Shanghai. According to the South China Morning Post, the company had secured office space in the Pudong district, overlooking the Huangpu River and neighbouring skyscrapers. Protos describes an « apparent acquisition » of an office; the legal and financial terms of that arrangement are not disclosed.
The programme changed shortly before it was due to start. An email sent to participants, screenshots of which circulated on social media, said the event was « postponed » due to « last-minute logistical considerations ». Protos, however, characterises the move as a cancellation. The sources therefore disagree on the exact wording, and cannot settle whether the event was cancelled or merely delayed.
A police presence reported but unexplained
Social media posts described a few local police officers at the site, and Protos reports that visitors saw Chinese police arrive. No official statement from the police or Shanghai authorities explains the intervention. Solana had not immediately responded to a request for comment from the South China Morning Post.
Promotion in Shanghai had already been highly visible in the days before the interruption. A giant Solana logo was projected onto the facade of the Citigroup Tower, and an event was held on a river boat. These operations preceded the company’s announcement.
Changpeng Zhao, co-founder of Binance, commented on the episode:
“amazing to see that Solana was able to advertise and even get an office in China”
Changpeng Zhao, Co-founder, Binance
He added that Binance had not managed to replicate that office presence or those promotional operations in China, a remark that highlights the gap between the visibility crypto firms seek and the limits imposed by the local regulatory environment.
A restrictive regulatory framework since 2013
According to Protos, China has opposed cryptocurrencies since 2013, when anti-Bitcoin legislation was adopted. A broader crackdown launched in 2021 made cryptocurrency use illegal in the country. The report linked to the probe argues that Solana’s activities as a provider of virtual currency are illegal under the 2021 rules, and that its promotions also breach those provisions.
The most recent legislation cited keeps the ban in place and adds two elements. The first prohibits Chinese entities and individuals established abroad from providing cryptographic services to Chinese individuals. The second introduces new restrictions on stablecoins and on the tokenisation of real-world assets (RWAs).
A documented precedent in Shanghai
Yahoo Finance, citing an official notice verified by Caixin, reports that a notice dated November 14, issued by the Shanghai head office of the PBOC and the Shanghai Municipal Financial Regulatory Bureau, ordered district administrative departments to investigate cryptocurrency-related activities and to complete those inspections by November 22. The excerpt does not specify the year and does not present this mechanism as targeting Solana specifically.
The activities covered were cryptocurrency trading, token sales and the distribution of tokens issued through overseas initial coin offerings. Once companies were identified, they had to be reported to the PBOC and the municipal bureau, and then forced to shut down. The precedent shows that central authorities can instruct district administrations and order the closure of identified entities.
Market reaction: a decline that proves nothing
At the time of writing, Protos cited a price of $90 for SOL, down 15% since the event was interrupted on October 16. The token had lost nearly 28% over one year, with a market capitalisation of $53 billion. A CryptoPanic page viewed at the same time showed a price of $90.22 and a change of +0.39%.
| Indicator | Value |
|---|---|
| SOL price (Protos) | $90 |
| Change since interruption (Oct. 16) | -15% |
| One-year change | -28% |
| Market capitalisation | $53B |
| CryptoPanic price | $90.22 (+0.39%) |
The sources provide no trading volume, liquidation data or comparison with other assets that would allow a broader measure of the market reaction. They therefore cannot attribute the 15% decline to the PBOC probe: the figure only measures the period since the Shanghai event was interrupted.
Because China’s restrictive framework has been known for years, a market shock specifically tied to this procedure remains to be demonstrated. The moves observed may also reflect broader altcoin market factors that are not documented in the available sources.
Outlook and scenarios
The case remains open, and the verifiable facts are limited to a reported probe, a modified event and an already restrictive regulatory framework. Three scenarios stand out at this stage:
- Clarification scenario: an official announcement specifies the legal basis, duration and individuals targeted, allowing a proper assessment of Solana’s actual exposure in China.
- Status quo scenario: the matter stays informal, promotions stop in mainland China, and the impact remains limited outside that perimeter.
- Escalation scenario: the procedure widens to other players and increases pressure on crypto promotional activities in major Chinese cities.
For now, the analysis should remain cautious. Monitoring PBOC and Shanghai regulatory communications will be decisive in distinguishing a communication measure from a structured legal action.
Sources
- Protos, report on the PBOC probe
- Messari, news
- CryptoPanic, news listing
- Yahoo Finance, PBOC order in Shanghai
- South China Morning Post, Solana’s Shanghai office
- Central Banking, PBOC profile
Cet article est publié à titre informatif et éducatif. Il ne constitue en aucun cas un conseil en investissement. Faites vos propres recherches (DYOR) avant toute décision.
