The Department of Business Administration of the People’s Bank of China (PBOC), the Beijing Financial Regulatory Bureau, and the authorities of the capital’s Huairou District closed a local software development company for cryptocurrency operations. This is stated in statement.
The Beijing Take Road Cultural Development site has been blocked. The measures were taken in accordance with a State Council order to crack down on illegal Bitcoin mining and trading, PBOC officials said.
According to reporter Colin Wu, the Beijing-based company was mainly engaged in the entertainment industry and had its own virtual currency Mao Li Coin.
This beijing company used to be mainly engaged in the entertainment industry, with its own virtual currency “Mao Li Coin”, means cat coin.
— Wu Blockchain (@WuBlockchain) July 6, 2021
Regulators also warned that organisations in China are prohibited from supporting crypto-asset activities, and financial institutions from conducting transactions with them.
Authorities warned consumers to be mindful of risks and to take a prudent approach to investing. Do not participate in hype around virtual currencies, do not blindly follow speculative trends, and beware of losses.
As Wu reported on May 18, three associations under the PBOC issued a joint notice banning companies from supporting crypto-related business.
On May 21, Vice Premier Liu He, during remarks at the Financial Stability and Development Committee, stated plans by authorities to take measures in relation to mining of digital assets and trading of Bitcoin.
Later, Xinhua News Agency criticized digital gold and its mining methods. Within a month, authorities in several Chinese provinces ordered miners to cease operations. Among them: Yunnan, Sichuan, Qinghai, Xinjiang and Inner Mongolia.
Galaxy Digital founder Mike Novogratz called the exodus of miners from China a “big plus” for the cryptocurrency industry.
MicroStrategy chief Michael Saylor noted that the restrictive measures against the Bitcoin mining industry in China were a geopolitical misstep by the authorities. He called this a “one-trillion-dollar mistake”.
Follow ForkLog news on Twitter!