China sends another crypto crackdown warning as it orders Beijing software maker to shut down

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China is increasingly attacking bitcoin.

Florence Lo / Illustration / Reuters

Chinese authorities have ordered a software maker to end suspected involvement in crypto trading, according to reports. Companies cannot provide advertising services for crypto-related companies, Chinese regulators have said. The move by the central bank of China and the financial regulator in Beijing intensifies the crackdown on crypto. Sign up for our daily newsletter, 10 things before the opening bell here.

Chinese authorities have asked a Beijing-based software maker to shut down over its alleged involvement in the cryptocurrency trade, media reported on Tuesday, a sign that the country’s authorities are continuing their crackdown on digital assets.

Beijing Qudao Cultural Development closed on the orders of a Beijing office of the Chinese central bank, which said the company facilitated crypto transactions through the software services it offered, Channel News Asia reported. The website of the software publisher is no longer accessible during the execution.

The People’s Bank of China said in a statement that it had taken measures “to prevent and control the risk of speculation in virtual currency transactions and protect the safety of public assets,” according to the report.

The central bank office also warned that companies in Beijing are not allowed to encourage crypto trading in any way. In particular, he noted that they were prohibited from providing physical trading platforms and crypto-related services, and from promoting cryptocurrencies through trade displays or advertisements.

Financial and payment companies have further been urged not to offer any direct or indirect cryptocurrency-related services to their customers.

China has cracked down on crypto in recent months. Financial institutions in the country are not allowed to offer crypto services, and associated companies, such as bitcoin miners, have been subject to strict restrictions or forced to shut down operations in certain regions. Some crypto influencers have had their social media accounts blocked.

The crackdown has impacted cryptocurrency prices as well as global crypto-trading activity. Ether’s global hash rate, for example, fell 23% in June as China’s regulatory grip tightened, while blockchain analytics firm Glassnode found that the ban on Ether Cryptocurrency mining pressured companies to liquidate crypto assets, driving prices down. China last month said it arrested more than 1,100 crypto-related money laundering suspects.

The Chinese government has addressed the crackdown, saying there is a need to meet the country’s climate change goals because mining and crypto transactions use a significant amount of energy. Concerns about security and fraud were also raised.

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