The People’s Bank of China (PBoC) has stopped operations of Beijing Tongdao Cultural Development.
The bank suspects the company of providing services in cryptocurrency trading.
The Bank warns businesses and banks not to engage in crypto transactions or to assist crypto trading or mining companies in any manner.
YEREVAN (CoinChapter.com) The People’s Bank of China (PBoC) has reportedly stopped the operations of Beijing Tongdao Cultural Development Co., Ltd. The country’s apex bank took the drastic step after suspecting the company of providing services in cryptocurrency trading. The Centra Bank also oversaw the closure of the company’s website as a result.
The Central Bank suspects the Beijing Tongdao Cultural Development of providing software for crypto trading. If the reports turn out to be true, the company will be in direct violation of the ban imposed on the crypto sector by the Chinese authorities.
Business Administration Department of People's Bank of China stopped a Beijing company suspected of providing service for virtual currency transactions. #Bitcoin#Crypto#China
The Bank used this opportunity to warn businesses and banks not to engage in crypto transactions or to assist crypto trading or mining companies in any manner that would contribute to violating the law.
The decision of the People’s Bank of China does not come as a surprise to those that have followed China’s war on cryptocurrencies.
Although in 2013 the Chinese government defined bitcoin as a virtual commodity and allowed individuals to freely trade Bitcoin online, the positive mood did not last long.
Later that year, Chinese financial regulators, among them the People’s Bank of China, banned banks and payment companies from providing bitcoin-related services.
In September 2017, China banned Initial Coin Offerings (ICOs). According to justifications provided by the authorities, the ban intends to protect investors and curb financial risks. Under the ban, the authorities prohibited companies from converting Chinese legal tender to cryptocurrency and vice versa. It caused an instant 6% drop in Bitcoin prices.
As a result, many trading platforms shut down operations in China. Many of those that could afford it moved their operations to other countries. For example, Chinese blockchain developer Bibox moved to Estonia.
The new dictate also banned financial firms and payment companies from providing services for ICOs and cryptocurrencies. Financial services such as the opening of accounts and registration and were also restricted.
In 2019, the People’s Bank of China notified of its intention to block access to all domestic and foreign cryptocurrency exchanges and Initial Coin Offering websites. The Government later also made clear that they intend to shut down mining in the country and cut down the electricity supply used for mining operations, intensifying the crackdown.
Despite the ban, Bitcoin prices remained largely unaffected. Source: TradingView
Despite the ban, Bitcoin prices looked largely unaffected. After facing a slight dip yesterday, the world’s largest coin regained lost heat at the start of the day. Although a drop is noticed today, it is a result of large sell-offs, thanks to the vast regain in prices.
Altcoins are also showing a healthy steak as a result of BTC’s overall positive performance.
Will Beijing Tongdao Cultural Development move abroad?
While the ban will affect the company, the latest crackdown may not completely spell its end. Like many companies that have fallen victim to the Chinese crackdown, the company may soon relocate and continue operations offshore.
Many Chinese investors currently continue to trade on platforms owned by Chinese exchanges that relocated overseas. As a result of the new measures and restrictions, companies including Huobi and OKEx had left Chia.
As a software development firm, it is very likely that they may follow the example of other Chinese firms and continue operations offshore.
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he currently works as a reporter at CoinChapter.
Contact: [email protected]
YEREVAN (CoinChapter.com) – Experts suggest Russia may use illicit gold trading to sidestep the sanctions imposed by the U.S....
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.