Bitcoin Slumps as the PBOC Cracks Down on Company Providing Crypto-Related Services

Bitcoin slumped further on Tuesday, after China’s central bank announced an even tighter crackdown on cryptocurrencies.

The world’s largest cryptocurrency saw much of its gains erased Tuesday morning, after the People’s Bank of China (PBOC), along with the financial regulator in Beijing, revoked a business license belonging to a company that was issuing software services to digital currency trading, as well as took down its official website.

Based on a translated statement, the PBOC and the financial regulator also issued a statement regarding the incident, warning that any remaining institutions are not permitted to provide business solutions, publicity, marketing, commercial display, and any other services to business activities related to cryptocurrencies. The statement also issued a broad warning to consumers on the risks associated with virtual currency trading.

The latest crackdown comes as China diverts its attention to the digital currency market, by increasing restrictions on the mining, trading, and holding of cryptocurrencies. Chinese regulators have also issued warnings about aiding in the facilitation of crypto transactions to the country’s banks. As a result, many virtual currency miners in China have been forced to either shut down or relocate to less restrictive jurisdictions.

Information for this briefing was found via the PBOC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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