A software firm based in Beijing has been shut down by China’s central bank due to its suspected involvement in cryptocurrency trading. The company, Beijing Qudai Cultural Development, has been ordered to suspend operations and deactivate its website.
The People’s Bank of China issued a statement indicating that companies in Beijing are prohibited from providing venues, commercial displays, or advertising for cryptocurrency-related businesses. This action is part of a broader crackdown by Chinese authorities on both technology and cryptocurrency companies. Recently, the Cyberspace Administration of China has targeted US-listed tech firms for alleged infractions related to national security and cybersecurity laws.
Among those impacted is the ride-hailing service Didi Chuxing, alongside other companies such as online recruitment platform Boss Zhipin and truck-hailing service Full Truck Alliance. Didi faced repercussions shortly after its listing on the New York Stock Exchange, where it raised $4.4 billion—the largest IPO by a Chinese company since Alibaba in 2014. Following the news of the crackdown, Didi’s shares dropped by more than 5%, negatively impacting one of its major investors, Japan’s SoftBank.