LGBT Rights Advocacy China announced it is ceasing all activities and shutting down its social media accounts in an announcement on social media on Thursday.
"We are deeply regretful to tell everyone, Queer Advocacy Online will stop all of our work indefinitely," the group said on WeChat, using the name of its social media account.
It closed its accounts on WeChat and Weibo, two widely used platforms in China.
A member who wished to remain anonymous confirmed that all the group's activities have been shut down but declined to say why.
Group founder Peng Yanzi did not respond to a request for comment.
LGBT Rights Advocacy China did work across the country, pushing for the rights of gay people and raising awareness about the community.
It advocated for same-sex marriage and fought workplace discrimination by helping individuals sue their former employers.
The group helped a young woman sue textbook publishers for writing that homosexuality was a disorder. She lost the case in February, after years of litigation.
Homosexuality is not a crime in China, and in bigger cities, there's a vibrant social scene where LGBTIQ+ individuals can socialise without much fear or discrimination.
However, it appears that restrictions on advocacy groups and online censorship has grown, those in the LGBTIQ+ community say.
In July, WeChat shut down dozens of accounts run by university students and non-profit groups on LGBTIQ+ topics.
One LGBT blogger, who declined to be named out of fear of retribution, said it's getting increasingly difficult to run an LGBTIQ+ group in the current environment, noting that WeChat and other social media platforms are deleting related content.
Shanghai Pride cancelled its annual event in 2020 and said it would no longer hold it without explanation after 11 years of operation.
"The future may bring more uncertainties, we await the day when we can lift the clouds and see the daylight," the group said in a post.