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China Authority Keeps a Heavy-Handed Approach Since Xi’s Blockchain Endorsement

Chinese crypto space took it as an auspicious sign for the cryptocurrency market in the world’s second-largest economy after China’s president Xi Jinping said that the country should seize the opportunity to speed up blockchain adoption.

China’s blockchain industry falls into unprecedented ecstasy after Xi’s blockchain remark. Bitcoin’s price soared 40% overnight, more than 100 blockchain concept stocks pumped and the search index of blockchain soared about 65 times. This rosy interpretation led to the return of speculative fever surrounding not just major cryptocurrencies but also alleged crypto pump-and-dump schemes.

China’s state-run media tried to clarify the relationship between blockchain and cryptocurrency, reminding the public that blockchain can’t be a gimmick of hype and keep alert to such activities and invest rationally. China Central Television (CCTV), a mouthpiece of the Chinese government, said in an article on Sunday that this is just the beginning as multiple cities including Beijing, Shanghai, Shenzhen, Hangzhou have all started taking similar measures.

Recently, many places are carrying out investigation and rectification of cryptocurrency transactions in China. Financial regulators in Shanghai has issued a notice to combat illegal cryptocurrency trade in the region. China’s technology capital Shenzhen also issued a warning against illegal activities involving cryptocurrency and has launched an investigation into local enterprises, vowing to crack down on initial coin offerings and fraudulent schemes that use blockchain as a marketing gimmick without any technological substance. On November 25, Beijing police cracked the crypto exchange BISS which claims to offer a channel for Chinese investors to buy U.S. stocks using cryptocurrency and defined it as illegal fund-raising fraud with 10 people suspected of being involved in its operations arrested.

On November 15, the Weibo (Chinese Twitter) of TRON, was banned after it has been complained of violating laws and regulations as well as the Weibo of Binance. WeChat, one of the largest instant messengers in China also bans several accounts that publish content about crypto trading to subscribers. On the evening of November 20, several Chinese crypto media were banned, on the grounds that “suspected of violating relevant laws and policies, and the account has been banned.” China’s social media platform Weibo has banned users from publishing any posts that contain “blockchain” and “crypto trading”.

A few days ago, China authority screens 39 enterprises suspected of illegal activities of cryptocurrency in technology capital Shenzhen by a financial monitoring tool launched by Chinese Internet conglomerate Tencent. To some extent, the shift of state-run media’s speech is in step with the state’s regulatory policy.

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