Chinese regulators go after firms providing crypto-related services

Chinese regulators go after firms providing crypto-related services

After clamping down on crypto mining facilities, Chinese regulators have now set their sights on companies providing crypto-related services.

Two Beijing regulators, the Business Administration Department of People's Bank of China (PBoC) and the Beijing Financial Supervision and Administration Bureau, issued a statement on Tuesday warning citizens of the risks involved in crypto trading.

According to the statement, the regulators had shut down Beijing Qudao Cultural Development Limited following an accusation that the firm was "providing software services to crypto trading activities." The regulatory bodies noted that the company’s operations have now been deactivated and its website suspended.

For clarity, Beijing Qudao was incorporated in 2016 and has been operating in the marketing, PR, entertainment, and modeling industries.

The municipal regulators also warned entities under its jurisdiction about providing services such as marketing, ad display, business premises, or paid online traffic to crypto-related transactions. Furthermore, financial institutions must not provide any direct or indirect service to customers related to cryptocurrencies.

The recent regulatory restriction follows a comment in May from China’s State Council threatening to clamp down on Bitcoin mining and trading activities. The high-level comment has led to the shutdown of several major Bitcoin mining facilities in China.

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