From Shutting Down A Software Firm to Issuing Industry Wide Warning, China Takes Serious Measures

• Avinandan Banerjee
• December 28, 2022

The Central Bank of China. Also known as the People’s Bank of China (PBOC) has closed down a software development firm over suspicions of unclear transactions in cryptocurrency. The central bank has gone so far as to advise and even warn other organizations against serving any such crypto based businesses with the provision of premises, displaying commercials or even any form of advertisements for promotional purposes.

According to a report by AFP, China has maintained a strict approach in its warning against companies across China not to aid or assist any such businesses related to cryptocurrency transactions, while shutting down a software development firm on Tuesday. 

The software firm that faced a crackdown from the Beijing office of China’s central bank, is named Beijing Qudao Cultural Development. The closure took place on suspicions that the firm had been offering software solutions and services for transactions related to cryptocurrency. The central bank has declared that the shutdown was required and was necessary in order to avoid the risk of speculation in such transactions and also in order to safeguard the assets of the public in general. The financial organizations across China have been instructed firmly not to lend any services to these crypto related companies that may involve their promotion by any means, be it providing office premises or advert spaces or anything else.

In a recent instruction given by the PBOC, all financial institutions and organizations have been deterred from offering any kind of services to their customers that involve cryptocurrency related activities. Just prior to this announcement, crypto mining firms across several provinces in China, including provinces such as Inner Mongolia, Sichuan and Qinghai, were shut down. For this reason the miners have been forced to leave and take their business abroad.