Digital currency firms Binance Holdings and Tron have been slapped by authorities with a suspension as part of an ongoing clampdown on digital currency trading in China's largest micro-blogging community, Weibo.
Last week, Weibo deleted the official accounts of market provider Binance and cryptocurrency company Tron following warnings by watchdogs in Shanghai and urging for a crackdown on cryptocurrency trading firms.
The latest crackdown was launched in October this year after Chinese President Xi Jinping urged for rapid blockchain growth, hailing it as one of the core technologies for advancement. Xi's comments inspired companies to hop into the cryptocurrency bandwagon and boost share prices.
In a memorandum, they co-approved November 14, the Shanghai headquarters of China's central bank and the financial regulator of the region said local government agencies should partner with any entities under their supervision that are linked to electronic money trading to exit from their operations as soon as possible, Bloomberg reported.
A Binance executive disclosed that before the warning was released on Wednesday, Weibo had removed the account of the company, adding that there was no reason given by the social media platform.
The ruling was challenged by Binance, the executive said, while Tron chief executive officer Justin Sun told Bloomberg on Monday that he did not think the shutdown of the Weibo page had anything to do with the government alert.
In the document, the Shanghai regulators quoted an order from China's main watchdog on web finance operations and management, which they said is concerned about the emergence of speculations following the recent roll-out of blockchain technology which underpins virtual money, including Bitcoin and its key counterparts.
A representative from the People's Bank of Chinas acknowledged the validity of the said note, which was circulated widely but referred for clarification with the bank for comment.
A separate statement, released on the Beijing Financial Regulator website on the same day, cautioned against the dangers of illegal financial-asset trading activities in the region- but did not specifically discuss cryptography.
Meanwhile, Bitcoin dropped to $8,191 on Tuesday by 0.3 percent, falling a fifth straight day in the midst of alarm about the restrictions imposed by China.
While China is a strong advocate of blockchain, the PBOC is developing its own virtual money -- authorities have launched a two-year drive to keep a tight leash on crypto trading amid worries like speculation, fraud and capital flight
