China continues to display its hostile stance towards the cryptocurrency world, with another step towards local companies.

 

The People’s Bank of China has shut down a local firm suspected of providing various software services to cryptocurrency businesses. As during previous negative actions, the Bitcoin price plunged rapidly after the news.

How did the news affect the Bitcoin market?

  • In a recent statement on the matter, China’s central bank reported that Beijing Tongdao Cultural Development Co., on suspicion of providing software services to transactions involving digital assets. shut down a firm.
  • The organization also recalled its hostile approach to the cryptocurrency industry on the grounds that it poses high risks for participants and investors.
    In the statement, it “seriously” warned all relevant institutions in the bank’s jurisdiction not to provide marketing or any other services in business activities related to virtual currencies.
  • The PBoC also stated that customers should be more careful about potential risks when dealing with digital assets. The bank added that they should refrain from doing so in order to protect their funds.
  • This move is an attack against the crypto space by the Chinese authorities, the most populated country in the world. China banned Bitcoin miners from operating within the country’s borders and took another important step in this direction, intensifying its actions in May.
  • It is worth noting that all previous blows by China, the superpower of Asia, also affected the prices in the cryptocurrency market, and today’s statement is no different.
  • Bitcoin had skyrocketed above $35,000 as it was previously known, but lost more than $1,000 within a few hours after the news.
  • Most altcoins headed south and ETH dropped below $2,300.

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