Beijing’s financial regulators have taken steps to crack down on crypto trading activities. The regulators, The Business Administration Department of People’s Bank of China, and the Beijing Financial Supervision and Administration Bureau announced that they were closing down the operations of the Beijing Qudao Cultural Development Limited.
The regulators said that the move was aimed at protecting investor exposure to the crypto market, which China deems as a risky investment. They said that, while the Central Bank has been against crypto trading, this company was providing software solutions that were facilitating it.
The move to crack down on crypto trading in China is not new. It started way back in 2017 when the country started a crackdown on crypto exchanges. More recently, the country has been on an assault against miners and has shut down miners in a number of important Bitcoin mining provinces. Some miners have relocated to other countries, with one of China’s biggest miners moving its operations to Kazakhstan.
The latest news of China shutting a crypto trading service provider doesn’t seem to have affected the market. At the time of going to press, Bitcoin was up by over a percentage. DeFi projects were the biggest gainers with most of them up by double digits.
This is indicative of a market that has already factored in Chinese hostility towards crypto. The growing uptake of crypto by institutional money is a huge factor too. Just today, CoinShares announced that it was expanding its operations through a buyout of Elwood, a crypto services company.