Central Bank of China issued a warning to firms regarding crypto-related businesses

Syed AhadWeb Editor

06th Jul, 2021. 08:46 pm
Cryptocurrency

Central Bank of China has issued a warning to firms, to stop the services regarding crypto-related businesses.

The Chinese central bank has announced the removal of a Beijing-based software firm over its suspected connection in cryptocurrency trading.

Beijing Qudao Cultural Development Co Ltd. was banned by Chinese authorities for suspected cryptocurrency trading, according to a statement made on Tuesday.

According to Reuters, the software company has been ordered to cease operations immediately, and its website has been taken down.

The People’s Bank of China‘s stance on cryptocurrency-related activities was also underlined in the statement from the Beijing financial supervision administration.

In addition to dealing directly with cryptocurrencies, Beijing organizations shall not provide venues, commercial displays, or advertising for any cryptocurrency-related operations.

This statement came after the Chinese government passed a slew of anti-crypto policies.

Whereas, the government made a statement in May asking for more strict crypto asset regulation.

The issue escalated in June when China’s central bank stated that cryptocurrency traders’ accounts will be cancelled.

A massive miner exodus caused the Bitcoin network hash-rate to fall to its lowest levels since 2019.

On the contrary, regulations have also cut off access to Bitcoin mining in the country.

Bitcoin’s price has dropped nearly 42% since May, due in large part to unfavorable government regulations in China. With China’s long-running anti-crypto campaign unlikely to end soon, Bitcoin will need to find support elsewhere if it is to prevent further decline.

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