China’s ban on crypto continues across the country as the Guangzhou Development District is next to be hit.
What’s going on?
China’s Ban on Crypto Continues
Last week, a very similar ban was imposed in Beijing’s Chaoyang district, whereby venues were handed out fliers detailing a prohibition against commercial venues hosting crypto-related events. Venues such as hotels, bars, and clubs were targeted.
Now today, local media outlet Jiemen has reported that the same ban has been extended to the Guangzhou Development District—a special economic zone in southern China, close to Hong Kong.
The reason given for the ban is the need to “maintain the security and stability of the financial system.”
China is Clamping Down
It’s too early to foretell the ramifications of these bans, but if we look at China’s recent actions toward cryptocurrency, the superpower is really trying hard to further clamp down on the digital assets.
ICOs and crypto trading are high on the list of crackdowns:
- WeChat, the massive social messaging platform, just over a week ago, blocked several high-profile crypto- and blockchain-related accounts, accusing them of promoting cryptocurrency that violated recently implemented regulations. Subsequently, WeChat’s operator, Tencent, went further, announcing a total ban on crypto trading.
- Major Chinese search engine, Baidu, also closed several crypto-related chat forums suddenly. It stated it was doing so “in accordance with relevant laws, regulations and policies.” However, Baidu has been a fan of blockchain technology all the same.
- Chinese e-commerce giant Alibaba also clamped down on crypto trading through its subsidiary companies, by restricting and/or banning accounts affiliated with crypto-trading. The retailer has been notoriously contradictory in its approach to crypto though.
- Also last week, the People’s Bank of China issued an alert against “illegal” ICOs. It warned that “financial innovation” was simply fraudulent schemes and gimmicks dressed up. Again though, the bank had only recently filed for a digital currency wallet, so this remains a little skeptical.
China has placed a ban across crypto-to-fiat trading since September 2017 and the effect of it has been felt across the market. The country officially blocked all websites related to cryptocurrency both domestic and foreign and the People’s Bank of China said that “to prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs.”
It doesn’t look like China is easing its stance anytime soon. What district will be next to receive the event ban, I wonder?
Featured Image: Deposit Photos/ fazon1