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.