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China central bank closes software firm for crypto trading

China central bank closes software firm for crypto trading

A Beijing-based software firm has been closed down by China's central bank because of its suspected involvement with crypto trading.

The software firm, Beijng Qudai Cultural Development, was ordered to suspend operations and deactivate its website.

A statement from the People's Bank of China added that companies in Beijing are prohibited from providing venues, commercial displays or advertising for cryptocurrency-related businesses. 

The move comes amid a clampdown from Chinese authorities on tech firms as well as crypto companies. In recent days, the Cyberspace Administration of China has targeted US-listed tech companies for alleged violations of China's national security and cyber security laws.

One of these is the ride-hailing app Didi Chuxing while others include online recruitment firm Boss Zhipin and truck-hailing app Full Truck Alliance. 

The move against Didi, which saw it removed from Chinese app stores, came just days after the firm listed on the New York Stock Exchange and raised $4.4bn, the biggest IPO involving a Chinese company since Alibaba in 2014. 

Didi’s shares fell by more than 5% following the news, as did the shares of one of its biggest investors - Japan's SoftBank. 

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