China’s central bank has confirmed that authorities halted a Solana promotional event in Shanghai and will investigate local entities and individuals involved in the blockchain network’s marketing activities.
Summary
- China’s central bank confirmed that regulators halted Solana’s Shanghai event after the blockchain network promoted its brand through advertisements in the city’s financial district.
- The People’s Bank of China said Solana’s promotional activities violated existing cryptocurrency restrictions and plans to investigate the domestic entities and individuals involved.
- Binance co-founder Changpeng Zhao questioned whether Solana’s organizers understood local regulations, pointing to a similar event disruption in Shenzhen less than a year earlier.
- Solana Foundation President Lily Liu had attributed the postponement to a surge in registrations that exceeded the venue’s approved capacity, while Chinese authorities have now confirmed regulatory intervention.
- Chinese regulators plan to intensify enforcement against domestic cryptocurrency dealers and local entities connected to overseas crypto issuance and trading platforms.
According to an exclusive report by China’s Financial Times, an official from the People’s Bank of China said regulators discovered that Solana had worked with domestic entities to advertise its brand, including a prominent display on the exterior of Citigroup Tower in Shanghai’s Lujiazui financial district.
The official said the advertising campaign amounted to cryptocurrency promotion, which is prohibited under China’s existing regulations. The central bank subsequently coordinated with local financial regulators, police, and market supervision authorities to stop the planned Solana Accelerate China 2026 event.
Authorities intend to investigate the companies and individuals connected to the promotional activities, although the official did not identify specific entities or announce any penalties.
Solana’s Shanghai event faced regulatory intervention
The Solana Foundation had scheduled gatherings across Shanghai, Hangzhou, Shenzhen, and Beijing between October 16 and 22, with discussions planned around blockchain infrastructure, artificial intelligence, payments, and other applications.
As crypto.news previously reported, the Shanghai event was abruptly suspended on October 16 after attendees encountered difficulties entering the venue. Reports at the time suggested that several law enforcement officers were present, while registered participants were left waiting outside.
Organizers initially attributed the disruption to logistical issues and said participants would receive further information once a revised schedule was available.
Following the cancellation, Binance co-founder Changpeng Zhao questioned whether the organizers had adequately considered China’s cryptocurrency regulations.
“Sad to see. Looks like they really didn’t know the local policies?” Zhao wrote on X, pointing to a similar disruption involving a Solana event in Shenzhen less than a year earlier.
Meanwhile, Solana Foundation President Lily Liu offered a different explanation for the postponement, attributing it to unexpectedly high attendance.
In an October 16 X post, Liu said registrations had quadrupled overnight following publicity surrounding the event.
“Due to the publicity, event registrations quadrupled overnight, far exceeding the event cap we had registered with local authorities,” Liu wrote, explaining that organizers had been unable to prevent attendees from overwhelming the venue.
She said the gathering would be postponed to comply with local requirements.
The central bank’s latest comments have since provided an official explanation for the intervention, explicitly linking the cancellation to regulatory action against Solana’s promotional activities.
China considers Solana promotion a violation of crypto rules
In explaining the decision, the central bank official described Solana as a major cryptocurrency issuance platform and said its native SOL token falls within China’s definition of virtual currency.
The official further argued that Solana’s blockchain infrastructure supports the issuance and trading of other cryptocurrencies, including Tether’s USDT stablecoin, placing those services within the activities restricted by Chinese regulations.
On that basis, authorities consider the promotion of Solana’s brand itself a violation of the country’s February 2026 regulatory notice.
The February restrictions on cryptocurrency activities were introduced jointly by the People’s Bank of China and seven other government agencies.
The notice reaffirmed that Bitcoin, Ethereum, stablecoins, and other virtual currencies do not have the same legal status as China’s sovereign currency. It prohibited unauthorized cryptocurrency trading, token issuance, and related financial services within mainland China.
Regulators further restricted domestic companies and individuals from assisting overseas cryptocurrency businesses that illegally provide services to mainland customers.
The updated rules on stablecoins placed specific restrictions on unauthorized yuan-pegged tokens and certain real-world asset tokenization activities.
The central bank official maintained that cryptocurrencies currently cannot adequately satisfy customer identification and anti-money laundering requirements, while their trading activities can encourage market speculation.
Chinese authorities plan further investigations
China’s position on cryptocurrency businesses has developed through several regulatory measures over the past decade.
In 2013, the central bank and other government agencies declared that Bitcoin could not circulate as legal currency. Authorities tightened those restrictions in 2021 by identifying cryptocurrency trading and related services as illegal financial activities.
The February 2026 notice retained that position while extending regulatory scrutiny to domestic intermediaries that help overseas platforms reach Chinese customers.
The latest intervention follows another Chinese crackdown on cryptocurrency-related risks reported in late October, when authorities called for stronger action against the use of digital assets in corruption and illicit financial activity.
The central bank official said regulators would work with local governments and other departments to pursue cryptocurrency-related businesses operating within mainland China.
The enforcement effort will specifically target domestic cryptocurrency dealers and China-based entities affiliated with overseas cryptocurrency issuance and trading platforms.
