Software maker Beijing Qudao Cultural Development had its cryptocurrency Mao Li Coin before the ban. Since May, the Chinese government has not allowed the trading of cryptocurrencies on the territory.

The People’s Bank of China (PBOC) and the Beijing Municipal Office of Local Financial Supervision ordered to close Beijing Qudao Cultural Development Co Ltd. The company allegedly provided software services for cryptocurrency transactions, so it had to stop its operations and close its website.

The Beijing Financial Conduct Authority and the Department of Business Administration of the POBC said companies could not provide cryptocurrency-related advertising services. These include business premises supplies, business displays, marketing advertising, public relations, and traffic advertisements.

They also recommended many consumers improving risk awareness and adopting an appropriate investment philosophy. They advised them not to engage in cryptocurrency trading speculation activities to avoid illegal use and disclosure of personal information. They emphasized that users should promptly report potentially illegal crypto-asset transactions to public security agencies.

China Establishes Bans to End Bitcoin

The People’s Bank of China has imposed these limitations on Bitcoin for some time. In May, the Chinese government announced a ban on cryptocurrency trading and mining. Besides, the Central Bank of China announced that it would close the account of users trading cryptocurrencies. More recently, the financial regulator prohibited banks from processing cryptocurrency transactions.

At the time, the People’s Bank of China warned all banks and institutions about the alleged risks of Bitcoin and the financing of token issuance.

Galaxy Digital analysts consider that China has also restricted mining as part of its plan to end Bitcoin. The company stated that the Financial Stability and Development Committee (FSDC) decided to do that for political reasons rather than economic ones.

China Does Not Want Bitcoin to Compete with the Digital Yuan

With these limitations, China seems not to want competitors near the digital yuan, whose implementation has been accelerating since 2020. They made the request after a group of central banks produced a document specifying how to design central bank digital currencies (CBDCs).

Chen Yulu, deputy governor of the People’s Bank of China, said they should build an independent and high-quality financial infrastructure. He added that they had to accelerate research and development for the central bank’s digital currency. Likewise, he stated that they should ensure pilot tests demonstrate that the digital currency is controllable and protects the security of payments.

However, other countries like El Salvador do not agree that ending Bitcoin will improve their economies. The Central American nation approved the Bitcoin Law to recognize the pioneering cryptocurrency as legal tender. A rule whose implementation should be ready on September 7th will support the regulation. They expect this to attract new investment of foreign capital and the development of industries.

The president of El Salvador, Nayib Bukele, has contributed to making Bitcoin stronger with this decision. The cryptocurrency is trading at around USD 34,572 and has dropped by 0.10% in the last 24 hours, according to CoinGecko.

By Alexander Salazar

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