Chinese regulators shut down company for developing cryptocurrency trading software

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The Business Administration Department of the People’s Bank of China (PBC) and the Beijing Finance Bureau have shut down a local cryptocurrency trading software company. This led to a drop in BTC by more than $ 1000.

Regulatory authorities issued a joint statement announcing the closure of Beijing Qudao Cultural Development Limited. She was incorporated in 2016 and has worked in marketing, public communications and entertainment. It turned out that the firm also provided cryptocurrency trading software.

Beijing journalist Colin Wu
wrote on Twitter that the firm had its own cryptocurrency, ‘Mao Li Coin’. Given that any activity related to cryptocurrencies is prohibited in the country, local authorities closed the firm and blocked its website with the assistance of the Huairou District Administration in Beijing. After the information about the closure of Beijing Qudao Cultural Development Limited appeared, the bitcoin rate fell by more than $ 1000 – from $ 35,100 to $ 33,700.

The Beijing Finance Bureau and the NBK’s Business Administration Department have warned that any financial institution based in China is prohibited from directly or indirectly conducting digital currency transactions. Ordinary firms should also not be involved in cryptocurrency activities. Otherwise, similar measures will be applied to them. In addition, regulators urged users not to participate in digital asset trading in order to avoid financial losses.

“Investors must be mindful of the risks and must develop the right approach to investment. You should not blindly succumb to the hype around cryptocurrency trading, as market speculation can lead to large material damage. Immediately report any violations of laws and illegal transactions with virtual currencies, ”the Chinese regulators said in a statement.

The measures to close the Beijing-based firm came weeks after the NBK ordered commercial banks to stop serving all individuals and entities that transact in cryptoassets.

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