According to the Shanghai Securities News report, local authorities in China’s capital city have jointly issued a risk warning to businesses not to deal with cryptocurrencies. The authorities said that the promotion of blockchain technology had given rise to crypto trading activities in the country.
China continues to crack down on crypto businesses.
Earlier, Chinese authorities officially announced to crack down on cryptocurrency-related businesses in the country, which led to many companies shutting down or halting services for the local users. Now authorities, including Beijing Local Financial Supervision and Administration Bureau, the Business Management Department of the People’s Bank of China, have warned companies not to indulge in crypto businesses.
Firms are not allowed to promote cryptocurrency projects.
In the issued warning, companies are prohibited from promoting cryptocurrency projects or platforms. In addition to that, companies are not allowed to engage in the crypto trading business and not provide any services related to cryptocurrencies. As China gears up to launch its national digital currency, it is making sure to minimize the market share of other cryptocurrencies in the country. Earlier, Chinese authorities seized more than 7,000 bitcoin mining rigs and arrested 72 operators of Cloud Token. The country has also banned funding of cryptocurrency related businesses.