China's financial regulators have shut down a Beijing-based software company they suspect is providing services to cryptocurrency traders.
In a joint statement issued on Tuesday, the Beijing Bureau of Financial Supervision and Administration and the Business Administration Department of the People's Bank of China issued a warning to all financial institutions and payment service providers not to provide any services. Related to digital currencies for customers. This includes companies that do not advertise or provide office space for any virtual currency related businesses.
As part of a regulatory crackdown, the two groups announced that they had ordered the closure of Beijing Tongdao Cultural Development, a company that allegedly provided software services for cryptocurrency transactions. Regulators have reported that they have suspended the company's website.
Local registry records indicate that the company has been in operation since April 2016. According to Chinese journalist Colin Wu, Beijing Tongdao used to get involved in the entertainment industry, with its own virtual currency Mao Li Coin, or cat currency.
Regulators urged people to immediately report advice about violations of laws and regulations related to virtual currency transactions and cautioned against getting involved in crypto-related businesses.
The organizers said: Do not engage in virtual currency trading activities, do not blindly follow hypothetical currency speculative behavior, and beware of damage to property and personal rights.
Personal bank accounts should be cherished and not used to withdraw or fund virtual currency accounts [...] to prevent illegal use and breach of personal information.
The closure may indicate that regulators in China are not limiting themselves to monitoring mining companies and financial institutions solely for their involvement in the cryptocurrency space.
