Another Step: China’s Central Bank Shuts Down a Firm Providing Services for Crypto Transactions

The People’s Bank of China has shut down a local firm suspected of providing various software services to cryptocurrency businesses. As it happened during previous negative actions, the price of bitcoin fell rapidly after the news broke.

• In the latest statement on the matter, China’s central bank has closed down a firm called Beijing Tongdao Cultural Development Co. because of suspicion that it provided software services to transactions involving digital assets.
• The organization also used the opportunity to remind about its hostile approach in regards to the cryptocurrency industry because it poses high risks for participants and investors.
• The announcement “solemnly” warned all relevant institutions within the bank’s jurisdiction not to provide commercial, marketing, or any other services for virtual currency-related business activities.
• The PBoC also indicated that customers should be extra vigilant about the potential risks when dealing with digital assets. In fact, they should refrain from doing so to protect their funds, the bank added.
• This is yet another shot undertaken by authorities from the world’s most populated nation against the crypto space. China intensified its actions in May this year when it took it a step further by banning Bitcoin miners from operating within its borders.
• It’s worth noting that all previous blows coming from the Asian Superpower impacted the prices in the cryptocurrency market, and today’s statement is no different.
• Bitcoin had just jumped above $35,000 as reported earlier, but it lost more than $1,000 in a few hours after the news broke.
• Most of the altcoins followed suit on the road south, with ETH dropping beneath $2,300.