PBoC Shuts Down Beijing-based Software Firm For Facilitating Crypto Transactions

Bitcoin Inner Mongoia China

The Chinese government has shut down a Beijing-based software company suspected of providing its services for virtual currency transactions.

According to an official statement issued by the People’s Bank of China (PBoC), the company in question, Beijing Tongdao Cultural Development Co., Ltd., was allegedly facilitating crypto transactions despite the regulator’s warnings against such activities.

Beijing Tongdao Cultural Development was spotted by the Business Management Department of the People’s Bank of China and the Huairou District Government, who had teamed up with other financial regulators to ensure that no institution promotes crypto trading in the country.

The regulator noted that the action taken against the Beijing-based firm was to “prevent and control the risk of speculation in virtual currency transactions, and protect the safety of the public’s assets.”

The firm’s official website has been suspended and the central bank reiterated that no institution under its jurisdiction should engage in any crypto-related transactions.

The statement reads,

“We solemnly warn relevant institutions within our jurisdiction not to provide business premises, commercial display, marketing, and paid diversion services for virtual currency-related business activities. Financial institutions and payment institutions within the jurisdiction shall not directly or indirectly provide virtual currency-related services to customers.

Authorities in Beijing have recently intensified scrutiny of firms within their jurisdiction, widening their crackdown on crypto trading.

China’s Crypto Restriction Fuels Bearish Markets

Since May, when the Chinese government and the PBoC published a note reiterating a total ban on all crypto-related services which had been implemented both in 2013 and 2017, Bitcoin has fallen off the cliff.

The country’s authorities later intensified their crypto crackdown by ordering crypto mining facilities in several major provinces to shut down.

Miners in Qinghai, Inner Mongolia, and Sichuan had to halt their operations immediately or face serious repercussions. 

The ban on crypto mining caused bitcoin’s price to tumble as several thousand traders liquidated their positions.

CNBC’s Jim Cramer even had to sell almost all of his bitcoin for fear of losing his funds.

The action taken against Beijing Tongdao Cultural Development is the latest move made by the Chinese government against cryptocurrency trading in the country.

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