The Chinese government has made it clear that they don’t want any virtual currency related activities within their country. Thus, making it illegal.
This morning, the Chinese authorities, pioneered by the Business Administration Department in conjunction with others, issued a release that stopped Beijing Tongdao Cultural Development Co., Ltd and by “ordering the company to cancel.”
The authorities suspected that the company had flagged its regulations by offering services for virtual currency payment transactions. Hence the reason for its closure.
Following that, the Business Administration Department also sounded a note of warning to other institutions to not deal in anything related to virtual currency within the country.
“Financial institutions and payment institutions within the jurisdiction shall not directly or indirectly provide virtual currency-related services to customers,” the release warned.
On the other hand, the release encouraged the consumers to stick to the traditional financial services and not “blindly follow related speculative behavior”. They encouraged them to protect their data and invest wisely.
In furtherance to that, the authorities told the citizens to report any company that’s dealing in virtual currency related activities for proper legal proceedings.
Surprisingly, the price of Bitcoin fell from $35,100 to nearly $34,000 after the news flashed across crypto Twitter. Thus making analysts wonder if the crackdown caused that.
At this juncture, it’s obvious that China is serious about her war against virtual currency and this is another big action in that direction.