Central Bank in China shuts down firm involved in crypto trading
The Chinese Central Bank has shut down a software firm for being involved in crypto trading activities. The company, Beijing Qudai Cultural Development, was ordered to cease its operations and shut down its website.
More than the company that was involved, which is a relatively unknown one, and the action that followed, what has got heads to turn in the crypto ecosystem is the fact that China continues to tighten its crackdown on crypto firms. China had recently imposed a ban on crypto mining which had forced many of the miners there, one of the biggest mining regions, to shift their operations to other countries or give up their business altogether.
This was also part of a concerted operation by the Chinese authorities to prevent any kinds of crypto operations, advertising, and commercial displays that are in any way related to the crypto industry. This did lead to a crash in the crypto prices but the worse seems to be over as the crypto industry has accepted the fact that they cannot be doing much business in China for now and have decided to move on.
Some analysts also believe that this set of actions is in preparation for the launch of a digital currency by the central bank of China though the bank has not revealed any details about it so far. If this is indeed true, these actions could be seen as part of cleanup before the digital currency is launched and this would help the authorities to monitor and control the flow of the digital currencies in a much easier and regulated manner.
Globally, the regulators and banks in different countries have been taking different approaches towards the crypto industry with certain countries being very open and welcoming while others continue to crack down on cryptos. Many other countries are still not sure on how to deal with this new financial ecosystem and are waiting for cues from other countries so that they can choose a path that is good for all. But it looks as though it is only a matter of time before all the regulators come around to the idea that this is the way forward for the financial ecosystem and it is better to regulate them and make them feel welcome rather than try to demonize it.