New China Crypto Ban Prohibits Crypto Events and Media Outlets to Operate
China's surprises the world with a decision to ban all crypto-related events and news outlets in the country.
China’s surprises the world with a decision to ban all crypto-related events and news outlets in the country.
Cryptocurrencies have faced a torrid time since the start of the year. The meteoric rise of Bitcoin and other cryptocurrencies towards the end of last year have turned the attention of regulatory agencies and banks towards the industry.
Most countries are putting up a framework to regulate the industry while some are banning cryptocurrencies. China belongs to the latter group.
The cryptocurrency community has been stunned by Beijing’s latest decision to ban all commercial crypto and blockchain-related events and news outlets in the region.
The government has decided to extend its original ban despite encouraging local financial authorities to speed up the development of blockchain technology.
Despite China’s stance on cryptocurrencies, it is still considered a major player in the industry. The ban in combination with the SEC’s ETF rejection, have sent Bitcoin and the rest of the market in the red.
Beijing bans all crypto events, news outlets
The Chinese government yesterday decided to ban all cryptocurrency events and news outlets in the country.
Dovey Wan, the Managing Director of Dhanua Capital, a California-based venture capital fund, tweeted that the Chinese government authorities have released an official order asking to ban all the cryptocurrency-related commercial activities and events.
Red Li, the co-founder of 8BTC and Chinese cryptocurrency researcher also shared a document released by the Chaoyang District government in Beijing, which ordered local financial authorities and police to ban offices and hotels from hosting crypto-related events.
Chinese news outlet QQ reported that local authorities in Beijing’s Chaoyang district notified businesses such as office buildings, hotels, and shopping malls that they shouldn’t host any events that promote cryptocurrencies.
The order was circulated on August 17 and two scheduled events were canceled since then.
The shutdown coincided with the ban on some cryptocurrency news outlets in the country. On Tuesday, nearly eight cryptocurrency-focused news outlets closed their official WeChat accounts.
Lanjiner, Jinse, Huobi, Deepchain, and others were shut down after they were alleged to have been violating the newly issued guidelines by China’s top internet watchdog, the Cyberspace Administration of China.
The parent company of WeChat, Tencent confirmed the shutdown of the news outlets, adding that the move is permanent. The crypto news outlets were accused of publishing information related to ICOs [initial coin offerings] and speculations on cryptocurrency trading.
China previously banned cryptocurrency trading and exchanges
This isn’t the face time that the Chinese government has banned cryptocurrency activities in the region.
Last year, the Chinese government made it illegal for cryptocurrency exchanges to operate in the country, sending all the major exchanges offshore.
The ban on cryptocurrency trading by the Chinese government was initiated in a similar period during as they were strictly prohibiting investors from sending money outside of China.
The ban on cryptocurrency trading in the country led to the exit of several exchanges, with most of them moving to neighboring regions like Hong Kong, Singapore, and Thailand.
Market experts stunned by the move
The latest decision to ban cryptocurrency events in the country comes as a surprise to many experts and analysts. Cryptocurrency analyst and write Joseph Young tweeted that:
“After banning Bitcoin three times, I thought there was nothing left for China to ban.
After spending $3 billion on funding blockchain firms, China now bans all commercial events related to crypto.
Weird stance. Asks local agencies to speed up blockchain developments then bans all events”
Malcolm Lerider, senior R&D manager at the China-based NEO, meanwhile believes that the ban would have little impact on the wider cryptocurrency industry in Beijing, much less the rest of the country.
Dovey Wan, however, believes that the order is an extension of the cryptocurrency trading ban that the central government first implemented in 2017. She stated that:
Chaoyang is a very symbolic district, what’s considered as the ‘center of the core power’. Also, the propagation of narratives in regulatory environment does not need an official national wide documents in China, this already sets the tone.
The Chinese government clamped down on cryptocurrency trading on September 4 last year and as the one year anniversary approaches, Dovey is concerned the clampdown on public cryptocurrency promotion could lead to further government action.