China closes down software manufacturer suspected of crypto ties

On the back of strict regulations that prevent Chinese companies from dealing directly with crypto related entities, the government has moved to shut down a Beijing-based software manufacturer that is suspected of ties to cryptocurrency trading. 

Reuters published a short article today stating that the Chinese central bank had ordered the immediate closure of a Beijing-based software company which it accused of involvement in crypto trading. 

The Chinese authorities themselves issued a statement ordering the firm in question, Beijing Qudao Cultural Development Co Ltd, to suspend operations. It also said that the company website had been taken down. 

The statement from the authorities also underlined the People’s Bank of China negative stance on cryptocurrencies. It reiterated the order that no company should have any direct dealings with any crypto-related entities. The statement also noted that companies should not provide crypto-related venues, commercial displays, or advertising. 

This move is the latest in a long running clamp down by the Chinese authorities on anything to do with cryptocurrencies. In May, the government issued a statement on its determination to impose tighter regulations on crypto. 

Then in June, the Chinese Central Bank announced that it would close the accounts of customers suspected of carrying out any crypto-related activity, such as trading. 

In addition, bitcoin mining operations in China have been severely affected. Many miners have been forced to close down their operations, with some choosing to transfer their operations abroad. Others have been given till the end of the year to cease operating. 

All this FUD from China has caused the bitcoin price to halve in value since its top in April. Also, Chinese miners turning off their machines has led to a massive dip in the bitcoin hashrate. 

Looking for positives in this sea of Chinese inflicted negativity, one might say that the bitcoin price does look to have found strong buying support at the $29,000 level. Also, the network has continued unaffected despite the large drop in hashrate.