China Shuts Down Software Maker Over Suspected Crypto-Related Activity, Issues Industry-Wide Warning
The People’s Bank of China (PBOC), the country’s central bank, has shut down a software firm over suspected involvement in cryptocurrency transactions. The central bank also warned organizations not to “provide premises, commercial display, advertising … and other services for cryptocurrency-related business activities.”
- China’s central bank warned companies on Tuesday against assisting cryptocurrency-related businesses as it shut down a software firm over suspected involvement in crypto transactions, AFP reported.
- The Beijing office of China’s central bank ordered the closure of a software firm called Beijing Qudao Cultural Development. The central bank alleged that the company had been involved in providing software services for cryptocurrency transactions.
- The central bank claims that the shutdown was necessary “to prevent and control the risk of speculation in virtual currency transactions, and protect the safety of the public’s assets.”
- The bank also warned organizations not to “provide premises, commercial display, advertising … and other services for cryptocurrency-related business activities.”
- The PBOC recently instructed financial and payment institutions not to provide cryptocurrency-related services to customers.
- The announcement came shortly after provinces in China, including Sichuan, Inner Mongolia, and Qinghai, shut down cryptocurrency mining farms, causing miners to move their operations abroad.
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