China's Central Bank Suspends a Software Firm Due to Alleged Crypto Trading

Kavya  |  Jul 7, 2021

China’s central bank has allegedly suspended a Beijing-based software firm for taking part in cryptocurrency trading activities.

Beijing Branch Of China's Central Bank Suspends Software Firm

The Chinese central bank's Beijing branch has issued a suspension order for Beijing Qudao Cultural Development Co Ltd, a local software firm. The business was reportedly involved in Bitcoin trading, according to a Reuters investigation.

The Beijing financial supervision administration and a section of the People's Bank of China (PBoC) stated in a joint statement on Tuesday that the software business "was suspected of providing software services for virtual currency transactions."

Beijing Qudao was ordered to suspend all activities, according to the two authorities. The firm's website has also been taken offline.

Firms Cannot Provide Advertising Services For Crypto-Related Enterprises

The People's Bank of China took the move ‘to prevent and regulate the danger of speculation in virtual currency transactions and preserve the safety of the public's assets.’

According to the PBoC's statement, institutions subject to its supervision may not provide "business premises, commercial display, marketing, or paid diversion services for virtual currency-related business activities."

Financial and payment businesses were advised not to provide direct or indirect cryptocurrency-related services to their clients.

China's Crypto Crackdown

China's officials have been conducting a broader crackdown on the country's crypto sector in recent months.

Besides pursuing Bitcoin miners - many of whom have already fled the country for greener pastures - Chinese officials have increased pressure on firms involved in cryptocurrency transactions.

Last month, the PBoC requested the country's banks and financial institutions stop selling cryptocurrency-related services, while Weibo, China's social media platform, blocked several famous cryptocurrency-related accounts for ‘violation of regulations and laws.’

 

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