The main Chinese social media platform, Weibo, has taken drastic measures to limit cryptocurrency promotion. As many as 80 influential figures associated with this industry have been banned, each of them having over eight million followers. What’s behind this decision?
Weibo, the most popular Chinese social media platform, has blocked the accounts of 80 influential crypto influencers. This radical decision is in response to the growing interest of the Chinese in cryptocurrencies. According to reports from South China Morning Post, this move is another step in China’s efforts to curb cryptocurrency-related activities.
This step is in line with local regulations aimed at stopping speculative trading and promotion of virtual assets. Already in August 2022, Chinese internet regulators ordered the removal of thousands of accounts and posts related to cryptocurrencies on various platforms. As reported by U.Today portal, many famous figures from the crypto world were banned on Weibo already in 2021. Weibo states it will continue to monitor user complaints and crack down on illegal cryptocurrency trading.
Weibo’s decision reflects Beijing’s steadfast policy towards cryptocurrencies, even as the industry is thriving in other regions like Hong Kong. In 2013, the Chinese central bank prohibited financial institutions from processing Bitcoin transactions, which was one of the country’s first moves against cryptocurrencies. The situation escalated in 2017 when initial coin offerings (ICOs) were banned and local cryptocurrency exchanges were shut down. By September 2021, major government agencies had led to the mass exodus of local cryptocurrency miners, even though China had previously been a major Bitcoin mining hub.
However, despite the restrictive policy, crime related to cryptocurrencies still thrives in China. In July, Chinese authorities arrested 21 people involved in massive money laundering using Tether. This group bought Tether at a lower price and then sold it at a profit through WeChat groups, aiding in laundering illegal funds.
China’s stance on cryptocurrencies remains steadfast and conservative. Recent actions by Weibo show how seriously the country perceives the threat posed by cryptocurrencies. Will other countries follow China’s example, or will they choose a more liberal approach?
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