PBOC Issues a Warning Against Providing Advertising and Marketing Services to Crypto Businesses
The Central Bank of China canceled a Beijing company that provides software services for virtual currency transactions and closed its website as no institution may provide services to companies dealing with cryptocurrencies.
The People’s Bank of China (PBOC) posted a warning on Tuesday, ordering the institutions within its jurisdictions not to provide their services, including marketing and advertising services to companies dealing with crypto.
According to the order, in line with Party Central Committee and the State Council’s crackdown on cryptocurrencies to control speculation in the sector, companies in the crypto sector are not allowed to provide business premises, commercial display, marketing and publicity, paid diversion, and other services for virtual currency-related business activities.
Financial institutions and payment institutions within the jurisdiction are also not allowed to provide virtual currency-related services to customers directly or indirectly. Additionally, they are required to timely report virtual currency trading-related transactions.
Recently, the Beijing Municipal Local Financial Supervision Administration, jointly with the Business Administration Department of the central bank of China and the Huairou District Government, suspended the official website of Beijing Chuadao Cultural Development Co., Ltd., which provides software services for virtual currency transactions, mentions the bank in the notice.
Additionally, people are reminded not to participate in virtual currency trading activities and not to blindly follow the trend of virtual currency investment-related behavior.
Amidst this, the Chinese publication Wu Blockchain reported that Huobi, China’s largest exchange’s wealth management service, ‘Huobi Earn,’ “is not available in the Chinese mainland, Hong Kong SAR, Japan, and other countries and regions.”
However, this suspension has been going on for some time and has nothing to do with the central bank’s supervision today.