China’s central bank has shut down a software company over fears of involvement in digital currency transactions. In a statement issued by the Treasury, institutions are warned not to provide services related to virtual currency, including the provision of office space or marketing services, reports CNBC.
The central bank ordered the closure of the Beijing Qudao Cultural Development software company because it was involved in providing software services for cryptocurrency transactions.
Cryptocurrency trading is banned in China. In May, the country banned financial institutions and payment companies from providing crypto-related services. In June, there were mass arrests in China of people suspected of using cryptocurrencies. That same month, regulators stepped up pressure on banks and businesses to stop providing such services, and Weibo stopped crypto accounts.
“The Chinese government is doing everything possible to ensure that bitcoin and other cryptocurrencies disappear from China’s financial systems and economy,” said Fred Thiel, CEO of Marathon Digital Holdings and a member of the Bitcoin Mining Council.
Last month, it became clear that many Chinese cryptocurrency companies were relocating to other countries amid tougher measures by Beijing to extract cryptocurrencies.
BIT Mining, for example, has already delivered 320 mining machines to China’s neighbor Kazakhstan. It is expected to receive another 2,600 machines for extraction in the country by the end of June, and the remaining machines will be sent to “overseas data centers in the coming quarters.”
Another company that is moving from China to evade regulations is Canaan. It is engaged in the production of crypto-digging hardware, and in early June announced that it had set up its first foreign center in Kazakhstan.
In Kazakhstan, there is a more liberal attitude towards construction, which is welcome for miners who have to build physical installations in a short period of time.
Last month, bitcoin collapsed after a ban by China on mining in southwestern Sichuan.
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