• China shuts down a software company suspected of having ties to the cryptocurrency market

  • The government has sought to shut down a Beijing-based software firm accused of ties to cryptocurrency trading, citing severe restrictions prohibiting Chinese companies from interacting directly with crypto-related entities.

    The Chinese central bank has ordered the immediate closure of a Beijing-based software firm accused of cryptocurrency trading.

    Beijing Qudao Cultural Development Co Ltd, the company in question, has been ordered to cease operations by Chinese authorities. The company’s website has also been taken down, according to the statement.

    The authorities’ statement further emphasized the People’s Bank of China’s anti-cryptocurrency position. It reaffirmed the directive that no company should deal directly with any crypto-related entities. Companies should not provide crypto-related venues, commercial displays, or advertising, according to the statement.

    This is the latest in a long line of Chinese government crackdowns on everything related to cryptocurrencies. In May, the government released a statement stating its intention to apply stricter crypto laws.

    The Chinese Central Bank then announced in June that customers suspected of engaging in crypto-related activity, including as trading, will have their accounts closed.

    Bitcoin mining efforts in China have also been significantly hampered. Many miners have been compelled to shut down their operations, with some opting to relocate their operations to another country. Others have been given till the end of the year to shut down their businesses.

    Because of China’s fear mongering, the value of bitcoin has halved from its peak in April. In addition, the bitcoin hashrate has plummeted due to Chinese miners turning off their devices.

    Looking for silver linings in this sea of Chinese-induced doom, the bitcoin price appears to have found solid purchasing support at the $29,000 level. In addition, despite the significant decline in hashrate, the network has remained unaffected.

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