Shenzhen Stock Exchange investigates Leshi’s plans to mine cryptocurrency

13 July 2018

The Shenzhen Stock Exchange sent an enquiry to Leshi Internet, a video streaming provider in China, over the statement made by its subsidiary to launch a new blockchain-based service with the rewards paid to the users in cryptocurrency.

According to the statement made by Lerong Zhixin, a smart TV manufacturer owned by Leshi, the plan is to enter into a partnership with a blockchain firm over introducing a new video streaming console able to mine cryptocurrency. During the launch event held this week, the company announced that taking into account the integration of a distributed network, users will be granted reward points in the form of tokens if they allow their idle broadband to be shared with other members of the blockchain.

After the announcement was made, the Shenzhen Stock Exchange, which is under control of the Chinese Securities Regulatory Commission, made an official enquiry to Leshi, demanding to provide more details about facilities at hand to operate a blockchain along with the workforce to be used for that purpose and the partner’s technical resources.

The enquiry also included the question about the company’s plans to allow users to mine cryptocurrency in the context of regulatory predicament in China. In fact, the question of the stock exchange is more about the company’s actual capabilities to start and operate a blockchain network, or whether it is just trying to boost its shares benefiting from the hype, as Leshi has been suffering serious financial problems with its stocks being down from $26 in 2015 to around $0.50 today.

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