China Opens Solana Investigation After Police Stop Shanghai Event
China's central bank has opened an investigation into Solana's activities in the country after authorities stopped its Shanghai event before it could begin on November 6.
The People's Bank of China (PBOC) confirmed that authorities stopped Solana's Shanghai event before doors opened and has launched an investigation into the companies and people behind Solana's activities in China. The central bank stated that promoting Solana (SOL) itself breaks Beijing's crypto rules, putting Solana's local partners at legal risk and potentially clouding its push to win Chinese software developers.
Official Statement
The PBOC communicated through Financial News, a newspaper it operates, with an unnamed department head reportedly giving an exclusive interview. The official stated that monitoring showed Solana using a domestic company to run high-profile ads for its brand and coin on the Citigroup Tower in Shanghai's main financial district. The PBOC worked with local financial regulators, police, and market supervisors to stop the event called Solana Accelerate China 2026.
We put Solana on the big screen because that's the big heart Solana has for the Chinese community, and that's the warm welcome we are so thankful to feel from the Chinese community.
Legal Basis
The PBOC gave two reasons for stopping the event: SOL is a virtual currency, and Solana provides technology used to issue and trade tokens such as Tether's dollar-pegged USDT. Both activities are considered illegal financial activity under a February 2026 notice from eight Chinese agencies that also bars overseas firms from offering crypto services to mainland users without approval.
Event Cancellation
The Shanghai event was originally scheduled for October 16 at the Shangri-La Hotel. That morning, organizers emailed guests stating venue logistics had forced a postponement, without mentioning police presence. BeInCrypto reported that officers kept guests outside for over an hour, which the PBOC has now confirmed.
Solana Foundation President Lily Liu later claimed registrations had quadrupled overnight, exceeding the attendance cap filed with local authorities, citing overcrowding risk and local requirements rather than a regulatory order. Binance founder Changpeng Zhao questioned on X whether organizers understood local policy, days after praising Solana's new Shanghai office.
Broader Context
This isn't Solana's first encounter with Chinese authorities. In October 2025, officers questioned its Accelerate APAC event in Shenzhen, leading organizers to cut a hackathon session. Mainland China has banned crypto trading since 2021, meaning Chinese residents could not legally buy SOL at home before this statement.
The PBOC named no specific companies, people, or penalties but indicated its next targets are domestic crypto traders and mainland operations of overseas crypto platforms. SOL traded at $90.05 as of this writing, down 7% in 24 hours, though this decline may reflect broader market conditions. The PBOC confirmed events in Shanghai and other locations including Hangzhou, Shenzhen, and Beijing were halted.
Related
