Just-In: China Central Bank Shuts Software Company For Suspected Crypto Trading

By Prashant Jha
Published July 6, 2021 Updated July 6, 2021
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Just-In: China Central Bank Shuts Software Company For Suspected Crypto Trading

By Prashant Jha
Published July 6, 2021 Updated July 6, 2021

The Chinese central bank has reportedly shut down a software company based out of Beijing on suspicion of involvement in crypto trading activities. The firm was reportedly focused on the entertainment industry and had a token called Mao Li Coin.

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The firm Beijing Qudao Cultural Development Co Ltd was ordered to seize all operations and their website was suspended as well. The order was issued by the Beijing financial supervision administration of the People’s Bank of China. The central bank in its statement said,

We have canceled a Beijing company that provides software services for virtual currency transactions and closed its website, no institution may provide services for virtual currency transactions.

The orders from the central bank warned institutions against offering any kind of office space or infrastructure assistance for virtual currency businesses.

China’s Crypto Crackdown Continue to Intensify

China’s crypto crackdown has been the talk of the crypto town for the past two months now. The world’s most populated country is notorious for issuing crypto warnings and banning virtual asset businesses from time to time. This year the ban was primarily focused on mining activities that led to one of the biggest Bitcoin miner exoduses from the country that hosted more than 60% of Bitcoin miners. As a result, the mining hashpower of the BTC network fell by 50% which led to the biggest mining adjustment in history.

When the crypto crackdown began in May, many foreign exchanges serving Chinese traders had to cut their service especially those offering leverage trade. However, the crackdown intensified with time and expanded to ban on mining as well.

Many market analysts beleive the reason for the recent ban could be the upcoming launch of the national sovereign CBDC Digital Yuan.

 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
987 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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