PBOC Orders Software Maker to Shut Down For Crypto Trading

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In Brief
  • A Beijing-based software maker has been shut down by the Beijing office of the People’s Bank of China (BPOC).

  • Beijing Qudao Cultural Development Co Ltd suspended operations, and had its website deactivated, over its suspected involvement in cryptocurrency trading.

  • This comes the day after International Blockchain Consulting closed all its mining facilities, amidst the crackdown in China.

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A Beijing-based software maker has been shut down by the Beijing office of the People’s Bank of China (PBOC).

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Authorities ordered Beijing Qudao Cultural Development Co Ltd to suspend operations, and its website had been deactivated, over its suspected involvement in cryptocurrency trading. The statement issued by authorities recalled that businesses should not provide services for crypto-related businesses.

IBC shutdown

This move is only the latest in China’s crackdown on cryptocurrency mining. Just yesterday, the International Blockchain Consulting “IBC” Group responded to the Chinese government’s clampdown. It did this by closing down all of its Bitcoin and Ethereum mining facilities across China. Large parts of the business will move to North America and South America, as well as across Europe and the Middle East.

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Founded in 2014, IBC spans 40 countries, offering blockchain consulting on anything from ICO supports to institutional training. The group has over 1,500 employees and has worked with start-ups and established players. Over the past seven years, it has also consulted with governments and institutions. Its loss represents another serious blow against the mining industry in China.

Chinese crypto crackdown

These are all just the latest steps in China’s overall crackdown on cryptocurrencies. By mid-May the government had officially requested that banks and payment providers ceased offering their services to crypto related companies. This PBOC reiterated this with several top banks and Alipay just last week.

Meanwhile, Chinese authorities have also taken up their issue with cryptocurrency mining operations. Just prior to the announcement, it was estimated that 65% of the world’s hate rate operated out of China. One mining company argues for its economic efficiency, utilizing excess energy and providing jobs for workers.

However, state authorities have already started shutting down some of the most productive mining regions in the country. Now this crackdown has triggered a mass exodus of crypto miners, that some are even setting up in Texas.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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