Alibaba’s Taobao announced regulations to ban ICO’s and Crypto-Services
Taobao, the internet shopping site owned by the Chinese retail giant Alibaba, announced to introduce a ban on crypto-services and blockchain related goods expanding its current prohibition on virtual digital currencies and crypto related services.
Chinese retail giant Alibaba was in the headlines ever since they filed the lawsuit against a cryptocurrency company Alibabacoin. Now it’s their subsidiary unit making the headlines. The Chinese online shopping store, Taobao will be banning its stores on the platform from providing services related to Initial Coin Offering (ICOs), according to sources.
Taobao is a Chinese online shopping website and is a subsidiary of Alibaba Group. It is one of the world’s biggest e-commerce websites, as well as one of the world’s top 10 most visited websites according to Alexa. Taobao has over 580 million monthly active users according to the sources.
The Chinese online shopping site announced new regulation on April 10, 2018, to standardize the market management order of the shopping site. This is aimed to create an advanced shopping experience that is safe and secure, ultimately enhance consumer’s confidence in purchase and satisfaction. Taobao will regulate the rules governing Taobao’s ban on the sale of goods, following the relevant laws and regulations put forward by the state. The new rules will take effect on April 17, 2018. The rule consists of two major changes. First, the new rules expand the concept of virtual currencies by incorporating ICOs and other similar digital products. Secondly, they will implement increased control of derivative services of digital products based on Blockchain technology.
Taobao aims to protect customers from financial risks associated with services related to ICO’s. This includes illegal fundraising and easy speculations. They warned the stores which violate the new rules and regulations and keep providing services such as white paper writing services will suffer from strict disciplinary actions.
Last week, BC focus reported that Alibaba sued the Dubai-based Alibabacoin Foundation ICO for copyright infringement that involved “prominent, repeated, and intentionally misleading” behavior using the company’s name.
It was a few days ago BC focus reported that the Dubai based cryptocurrency companyAlibabacoin rejected the trademark allegations made by Alibaba company.
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