Chinese authorities shut down cryptocurrency-linked company

July 6, 2021


Chinese authorities shut down cryptocurrency-linked company

The Department of Business Administration of the People's Bank of China (PBOC), the Beijing Financial Supervision Bureau and authorities in the Huairou metropolitan area have shut down a local cryptocurrency software company. It said in a statement.

The Beijing Take Road Cultural Development website has been blocked. The measures were taken in accordance with an order from the State Council of China to combat illegal bitcoin mining and trading, the NBK clarified.

According to journalist Colin Wu, the Beijing-based company was mainly involved 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.

Regulators also warned that organisations in China are prohibited from supporting digital asset-related activities and financial institutions from conducting transactions with them.

   "Remind consumers to raise risk awareness and take a proper approach to investing. Do not engage in hype trading in virtual currencies, do not blindly follow speculative trends and beware of damage," authorities said.

Recall that on May 18, Wu said that three associations under the People's Bank of China had issued a joint notice prohibiting companies from supporting cryptocurrency-related businesses.

On May 21, State Council Vice Premier Liu He, while speaking at a meeting of the Financial Stability and Development Committee, announced the authorities' plans to take action against mining of digital assets and bitcoin trading.

China's Xinhua news agency later criticised digital gold and its mining methods. Within a month, authorities in several Chinese provinces ordered miners to stop their activities. Among them: Yunnan, Sichuan, Qinghai, Xinjiang and Inner Mongolia.

Galaxy Digital cryptocurrency bank founder Mike Novogratz called the exodus of miners from China a "big plus" for the cryptocurrency industry.

MicroStrategy head Michael Saylor said that the bans on the bitcoin mining industry in the PRC were a geopolitical blunder by the authorities. He called it a "trillion dollar mistake".

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