China’s regulatory crackdown on cryptocurrencies continues

China’s financial regulators have shut down a Beijing-based software company that they suspect of providing services to crypto traders.

In a joint statement on Tuesday, the Beijing Financial Supervision and Administration Bureau and the Business Administration of the People’s Bank of China warned all financial institutions and suppliers: The payment service does not offer crypto-related services to its customers. This includes companies that do not advertise or provide office space for “virtual currency-related business”.

As part of a regulatory move, two groups have announced that they have ordered the closure of Beijing Tongdao Cultural Development, a company accused of providing software services for exchanging cryptocurrencies. Regulators said they had also blocked the company’s website.

Local registration records show that the company has been up and running since April 2016. According to Chinese journalist Colin Wu, Beijing Tongdao Company used Entry into the entertainment industry with its own virtual currency Mao Li coinor “cat coin”.

Regulators have urged people to “quickly report any evidence of violations of laws and regulations related to cryptocurrency trading” and warned against engaging in crypto-related deals:

“Do not engage in business activities with virtual currencies, do not blindly follow speculative behavior regarding virtual currencies so that property damage and personal interests are not lost,” said the two regulators. “Personal bank accounts should be valued and should not be used to withdraw or deposit funds into virtual currency accounts. […] to prevent illegal use and breach of personal data. “

The shutdown could show that China’s regulators aren’t limited to monitoring miners and financial institutions for their involvement in the crypto space.

In June, the People’s Bank of China ordered major domestic banks and mobile payment service providers to deny some services to customers making money-related transactions. The central bank makes it possible for such companies to “cut the payment connections in good time” anyone who does this – possibly all affected customer accounts can be closed.

Connected: China’s crackdown shows that industrial bitcoin mining is a problem for decentralization

Mining companies in key regions of the country have reportedly closed after the State Council’s Financial Stability and Development Commission announced in May that it would restrict bitcoin mining (BTC). The regulatory move could force some of China’s greatest miners to move to countries with seemingly more open-minded lawmakers, including the United States, the United Arab Emirates and the United Arab Emirates.