The Central Bank of China (PBOC) and the Beijing Municipal Office of Local Financial Supervision ordered the closure of software maker Beijing Qudao Cultural Development Co Ltd for allegedly providing software services for transactions with cryptocurrencies. The authorities ordered the company to cease operations and shut down its website.
The Beijing Financial Conduct Authority and the Business Administration Department of the People’s Bank of China noted that companies cannot offer advertising services to organizations related to cryptocurrencies, including the provision of commercial premises, commercial exhibition, marketing , public relations and traffic announcements, etc.
Beijing Qudao Cultural Development was mainly engaged in the entertainment industry .
The information was disclosed today July 6, 2021 by the Central Bank of China. In the statement you can read the following:
In order to implement the decision-making and deployment of the CPC Central Committee and the Council of State on the fight against virtual currency transactions, prevent and control the risk of speculation in virtual currency transactions, and protect the security of people’s property, recently, the Beijing Municipal Financial Supervision and Administration jointly Chinese, the People’s Bank of China Business Administration Department, Huairou District Government Department, Beijing Access Culture Development Department Co., Ltd., which is suspected of providing software services for transactions of virtual currency, the company has been cleaned up and ordered to be canceled and the official website has been deactivated.
Department of Business Administration of the People’s Bank of China.
Both s government entities advise local institutions not to offer information about cryptocurrencies to commercial premises, nor in business exhibitions, advertising marketing , paid diversion and other services for commercial activities related to virtual currency.
At the same time , remind the large number of consumers that they must improve risk awareness, establish a correct investment philosophy. Therefore, they urged them not to engage in virtual currency trading speculation activities to prevent the illegal use and disclosure of personal information. The timely report of virtual currency transactions related to illegal leads, suspected of illegal crimes , must be reported promptly to the public security organs, they point out.
However, it is not clear whether the company offered the aforementioned services. Blockchian journalist Colin Wu noted through his Twitter account that this Beijing company used to be mainly engaged in the entertainment industry, with its own virtual currency called “Mao Li Coin” (which means cat coin).
China’s restrictions on ending bitcoin
These limitations of the Central Bank of China to bitcoin date back a long time. In May 2021, the Chinese government announced its cryptocurrency trading ban and the cryptocurrency mining ban regulation law and, in addition, the Central Bank China announced that they will close users’ accounts when they catch or are suspected of trading cryptocurrencies. However, the most recent was the one that happened on June 21 when it prohibited the banks from processing transactions in the cryptocurrency , as reported by CriptoNoticias.
On that occasion, the People’s Bank of China published a notice addressed to all the banks and institutions that it had to implement. The notice read: “On Bitcoin Risk Prevention” and “Announcement on Token Funding Risk Prevention”, among other regulatory commitments.
China has also cracked down on mining as part of its plan to “wipe out bitcoin,” revealed a report from analysts at financial services firm Galaxy Digital. The company assured that the decisions made by the Financial Stability and Development Committee (FSDC) are based on political rather than economic considerations, as they feel unable to censor the network .
These limitations seem to indicate that China does not want close competitors with the digital yuan, whose implementation has been accelerating since 2020. The request was made days after a group of central banks – of which China did not is part of – will prepare a document in which they specify how the national digital currencies should be designed .
«We must build an independent financial infrastructure and of high quality, accelerate the pace of research and development of the central bank’s digital currency, and ensure that the pilot tests show that the digital currency is controllable and protects the security of payments, ”said Chen Yulu, Deputy Governor of the Central Bank Chinese, in statements to the press.
But other countries, like El Salvador, do not think that ending bitcoin is the solution to improve their economies. The Central American nation passed the Bitcoin Law to give bitcoin status as a national currency. Regulation that will be supported by a regulation that is expected to be ready on September 7, 2021 for its implementation, with which they hope to attract new investments and the development of industries in that country .
This decision by the President of El Salvador, Nayib Bukele, has contributed to making bitcoin more solid. At the time of writing this note, its price is USD 33,912 with an increase of 0.70% in the last 24 hours .
