China continues its drive against cryptocurrency promotional events
China’s crackdown on cryptocurrencies continues unhindered with the ban on commercial venues hosting promotional events for cryptocurrencies being extended to Guangzhou Development District, reports local media outlet Jiemian.
The Guangzhou Development District was established in the 1980s and is one of China’s first special economic zones. It has issued a notice that bans the hosting of events promoting cryptocurrencies, citing “maintaining the security and stability of the financial system” as part of the reason.
The drive against cryptocurrencies continues…
This latest ban on cryptocurrency-related activities is the second in China, following Beijing’s Chaoyang district’s order on August 22 that banned any mall, hotel, office, or public space from holding events promoting cryptocurrency-related activities.
China continues to come down heavily on the domestic crypto space with a range of measures meant to target the loopholes in the system through which Chinese investors can gain exposure to initial coin offerings (ICOs) and crypto trading.
Last week, China’s biggest messaging app WeChat blocked a number of crypto and blockchain-related accounts, including Deepchain, Coindaily, Huobi News and Jinse that were accused of publishing crypto ‘hype’ in violation of regulations introduced earlier this month.
China’s big technological giants are also scrambling to keep up with the regulators. China’s biggest search engine Baidu, recently shut down some of its very popular cryptocurrency chat forums in attempt to put a lid on the growing impact of crypto trading. Chinese e-commerce giant Alibaba, whose subsidiary Ant Financial runs the payment app Alipay is also following suit and has announced that it will ban any account that it finds to be engaged in any form of crypto trading.
On August 24, the People’s Bank of China (PBoC) issued its own risk advisory asking citizens to stay away from illegal activities being done in the name of blockchain and cryptos. The report said that blockchain and the idea of such activities use the idea of ‘financial innovation’ to lure investors, ‘but are just Ponzi schemes in essence’.
There are also reports that new measures are underway to bolster the ‘clean-up’ of third-party crypto payment channels, including those used for OTC trade.
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