Chinese authorities have taken down a crypto-based company ‘Biss’ operating in Beijing.

Reportedly 10 staff members have been arrested by the authorities.

1st major step to be seen after the report of illegal companies’ operations.

After the recent report of illegal companies operating under the nose of Chinese authorities, they have decided to take strong steps on suspicious companies.

The first target that happened to be in this case is the Beijing based cryptocurrency exchange ‘Biss’.

Rumors of this action have been around in the market for quite a time, but official news came out on November 22, 2019, by the Chinese media outlet ‘Sohu’.

Soon after the arrests company published a blog confessing that there were issues with its customer withdrawal system, and the company is willing to fully cooperate with the authorities.

According to the experts analyzing the situation, the actions have been taken against the company due to the services provided by the company, that these services don’t fulfill the criteria made by capital control regulations in China.

Reasons for taking such strong steps against crypto-based companies.

These steps could be seen as an aftereffect of the breakdown of the news of those 39 illegal companies operating in Shenzhen, the crypto hub of China.

This may also be an effort of the government authorities to put a check on the increased frequency of ‘illegal financial activities’ in the area of virtual currency transactions and protect the rights of the investors.

In addition to that, Chinese authorities commented that ‘Biss’ takedown was important and was done for the public’s good itself. In this manner, investors will come to know about the criteria set by the authorities and report any suspicious activities performed by any company and be aware of their safety as well.

Effects of the news

After the confirmation of the news about Biss’s shutdown, the People’s Bank of China issued a notice about tightening its clauses on all forms of cryptocurrency trading.

Though this announcement was predictable as in latter months, China’s government has been emphasizing its attitude of “blockchain not Bitcoin” and has made several public announcements including an hour-long television program making a statement very loud and clear that they are not in support of cryptocurrency in any way.

Seeing Chinese authorities’ attitude over this Biss’s issues it is quite possible that some more of these actions will be seen by the authorities in the upcoming times and more of the crypto exchanges may shut down, though it is impossible to say how much time it will take by it is definitely on its way.