Chinese Ban On Crypto Events: Devil In The Detail?

Chinese authorities ban public hosting of crypto and blockchain related events. This surprising move doesn’t fit in quite well with the recent Chinese policy developments when it ushered local authorities to speed up blockchain innovation.

During his speech at the 19th Academician Conference of the Chinese Academy of Sciences, Xi Jinping endorsed blockchain as one of the technologies that is reshaping the global landscape and called it an economic ‘breakthrough’.

Ever since the start of the 21st century, a new generation of industrial revolution is substantially reshaping the global economic structure … with artificial intelligence, internet of things and blockchain constantly making application breakthroughs.

But as per the recent developments, the authorities issued a document requiring all commercial venues not to host any crypto-related event. Dovey Wan, Managing Director at DHVC, tweeted the red titled directive:

The notice reads:

Shopping malls, hotels, guesthouses and offices:

In order to protect the property rights and interests of the public, protect the legal monetary status of Renminbi, prevent the risk of anti-money laundering, and maintain the security and stability of the financial system, according to the provisions of the Notice on Further Rectification and Rectification of Virtual Currency Exchanges, such as Bitcoin, issued by the Office of the Leading Group of the National Internet Financial Risk Rectification Work All shopping malls, hotels, hotels and office buildings are not required to undertake any form of virtual currency promotion and publicity activities. If you know the relevant information, please report it to the District Office in time.

Chaoyang District Financial Risk Prevention and Control Leading Group Office issued these red-headed documents to various shopping malls, office buildings, hotels and other places in the jurisdiction, requesting that no virtual currency promotion and presentation activities should be undertaken. Under supervision, two events have been reportedly cancelled. Not so surprisingly, this ban was preceded by a ban on crypto and blockchain-focused accounts on WeChat, a Chinese multi-purpose messaging, social media and mobile payment app. Tencent, operator of WeChat, said in a statement that it has shut down these accounts permanently as they are “suspected of publishing information related to ICOs and speculations on cryptocurrency trading.” The shutdown reportedly affected eight blockchain media outlets that include Golden Finance, Firecoin Information, Cannon Rating, Coin World Express Service, Deep Chain Finance, Daily Currency Reading, TokenClub and Wujie Block Chain.

Red Li, co-founder of 8btc, posted these accounts that were blocked until further notice because of their relation with crypto and blockchain:

These two consecutive blow-backs are quite an upset to cryptocurrencies as these outlets were the last defendants for the fabric of blockchain in China by providing investors and consumers timely information about crypto prices, reviews and products because China, the biggest miner of cryptocurrency, has banned the use of cryptocurrency and is determined to stamp out the last of virtual currency use from the general public.
For instance, in June, China declared victory over cryptocurrency trading by claiming that just one percent of bitcoin transactions are made using local currency.

Although, the heavy-handedness of Chinese authorities while dealing with cryptocurrency can be an indicator of the underlying Chinese desire to control these currencies by preventing general public use. China is speedily developing innovations in frameworks that can allow the deft examination of cryptocurrencies under the regulators’ knife.

Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com

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