The Chinese central bank has shut down a software firm for alleged involvement in cryptocurrency trading. This is in compliance with the crypto crackdown earlier imposed by the government.
According to reports, the Chinese central bank has taken down a software company based in Beijing on suspicion of engaging in crypto trading activities.
The company was said to be focused on the entertainment business and has a Mao Li Coin token.
Beijing Qudao Cultural Development Co Ltd was ordered to shut down all of its operations, and its website was also shut down.
The order was issued by the People’s Bank of China’s Beijing financial supervision administration. The central bank in its statement said,
We have cancelled 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 central bank’s orders advised institutions against providing any form of office space or infrastructure help to virtual currency enterprises, according to the central bank’s statement.
For the past two months, China’s crypto crackdown has been the talk of the town. The world’s most populous country is known for issuing periodic crypto warnings and prohibiting virtual asset enterprises.
The restriction was largely aimed at mining activities this year, resulting in one of the largest Bitcoin miner exoduses from the country, which was home to more than 60% of Bitcoin miners.
As a result, the BTC network’s mining hash power dropped by 50%, resulting in the largest mining adjustment in history.
Many overseas exchanges serving Chinese traders had to stop their services when the crypto crackdown began in May, especially those that offered leverage trade.
The crackdown, however, grew stronger over time and eventually included a mining prohibition.
The forthcoming launch of the national sovereign CBDC Digital Yuan, according to several market observers, could be the cause for the current prohibition.
