The development teams of CNHC, an offshore renminbi-pegged stablecoin, and HKDC tied to the Hong Kong dollar have been detained by Shanghai police, PANews reported May 31.
According to reports, the Trust Reserve development team was taken on May 29. PANews also said it found a judicial seizure notice dated the same on the door of the company’s office.
Earlier this year, cryptocurrency exchange KuCoin completed a $10 million funding round as the issuer of CNHC. The offshore renminbi is known by the abbreviation CNH.
China has banned cryptocurrency trading, mining and banking and is in the process of developing its own Central Bank Digital Currency (CBDC). Hong Kong has been more open to the industry, having released proposed rules for cryptocurrency trading platforms in February.
CoinDesk has reached out to the CNHC team and the Shanghai and Hong Kong police for comment.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Team Behind Offshore Yuan, Hong Kong Dollar Stablecoins Detained by Chinese Police: Report