Shenzhen Stock Exchange (SSE), a state backed exchange in China, has temporarily halted the trading of Lifesense. According to local media news, Lifesense is planning to introduce applications in the medical industry based on blockchain technology. The company is reportedly planning to establish research Blockchain lab to move ahead on this front.

The share price of Lifesense has hit the upper circuit of 10% on March 19, 2018 attracting the dragon eye of the regulator. The state backed exchange ordered an enquiry and directed the company to provide reply latest by March 23, 2018, about its push into the blockchain based technology.

The company is obligated to provide its plans for the next three years along with funding of the shares and the relevance of the blockchain technology for its applications.

According to the news published in China Money Network, the stock exchange has also sent a letter to the Zhejiang Enjoyor Electronics earlier this week. The company has withdrawn the announcement about its proposed blockchain based forensic certificate from the WeChat.

The exchange has warned companies in January that is closely watching the activities of the companies for any proposed push into the blockchain based offerings. It is observed that SSE has investigated over 20 listed firms for their blockchain push in the past.

The companies in the US has also used the news of blockchain entry to increase the share prices cashing the frenzy of people about the digital currency. The securities and exchange commission (SEC) in the US has increased measures over the companies that changed names to reflect the blockchain entry. SEC has halted trading of almost three companies in February for issuing statements about take over of block chain related assets.

EU Favors Blockchain Initiative

The European Commission’s President, Mr. Valdis Dombrovskis is scouting for regulatory measures against the cryptocurrencies. EU is urging the nations to use the blockchain technology to stay competitive in the future but with appropriate controls to safeguard the users from the resulting hazards.

It is a significant shift from the early stance on the cryptocurrencies. In the past, the EU has warned the states about the possible risks associated with the bitcoin usage.