A shared beds service in an office building in Shanghai was closed on July 17, thepaper.cn reported, adding that mattresses and sleeping capsules’ doors had been removed.

This comes after similar services in Beijing and Chengdu were shut down due to same reason, as government agencies step up regaulating the booming shared economy in the country.

According to Municipal Bureau of Public Security in Shanghai, the service was suspended for lacking proper licenses, such as a fire prevention license and a business license for running a hotel or guesthouse.

A source disclosed that after the check in the Pudong New Area, shared beds services in Jing’an and Xuhui districts voluntarily closed.

A manager of the company said that discussions are underway. Customer service staff said they are aware of the news, but the company has not been contacted by the police, and they are looking into it.

If there is no official response, the business will be forced to suspend services, they added.

Dai Jiangong, the company founder and CEO, said that they have not received any official notice, and business operations have been suspended because of a network system upgrade.

This comes after similar services in Beijing and Chengdu were shut down for the same reason, as government agencies step up efforts to regulate the country’s booming sharing economy.