China Is Leaving No Stone Unturned With Cryptocurrency Ban
Chinese regulators are doing everything possible to crack down on cryptocurrency trading activities. This time around, they have shut down a company that develops cryptocurrency trading software.
China’s War Against Crypto Trading Continues
The Beijing office of the People’s Bank of China announced yesterday that it had called for the shutdown of a company developing software for cryptocurrency transactions. The authorities also warned citizens against trading cryptocurrencies due to the risks attached.
The authorities shut down the operations of Beijing Qudao Cultural Development Limited, claiming that the company provides software services that support crypto trading activities. Following the ban, Beijing Qudao has now been deactivated, and its website has been suspended.
Beijing Qudao Cultural Development was established in 2016 and is popular for providing services in the marketing, public relations, modeling and entertainment sectors. According to the regulators, companies operating in Beijing are no longer permitted to provide business premises, ad display, marketing or paid online traffic services to crypto entities.
The regulators also said banks and financial institutions are not allowed to provide any service directly or indirectly to customers related to crypto transactions.
Crypto Market Is Used To China’s Ban On Cryptocurrencies
The cryptocurrency market has gotten used to the numerous bans issued on cryptocurrency activities in China. Over the past month, the Chinese authorities have banned crypto-related activities on more than three different occasions.
The People’s Bank of China directed banks and payment companies in China to stop providing financial services to cryptocurrency entities. The move made it almost impossible for cryptocurrency trading to thrive in China.
The Sichuan government also joined other Chinese provinces in banning cryptocurrency mining in the region. The shutdown of 26 mining farms and other smaller cryptocurrency miners ultimately affected Bitcoin’s hashrate.
However, despite the constant FUD from China, Bitcoin’s price has maintained its position in recent weeks. Bitcoin is still trading below $35k, down by over 40% from its all-time high.