China and crypto-currencies have quite a history. For some time now, the country’s relationship with digital assets has not been entirely friendly. In fact, you could say it’s not friendly at all. If we take a quick look at what has happened in the last year with China and crypto-currencies, we realize that with the ban, crypto-currencies are a clear enemy for China.
After several threats, China last year decided to take the important step of banning the buying, selling, holding and any type of transaction with crypto-currencies. This hit the crypto-currency market hard, leaving it with huge losses, as China was one of the largest crypto-currency markets in the world.
Although this seemed to be a blow to the market, the final blow had not yet arrived, and soon after, China decided to ban crypto-currency mining in the country. At the time, China was the most important mining center in the world. Most of the bitcoins that were mined there were part of global transactions, which undoubtedly caused major problems.
The announcement of China’s ban led to one of the largest mining migrations ever, which caused the value of the market to drop significantly. It also caused miners to look for new places to restart their operations. Some went to neighboring countries, but others moved to the United States, making it the world’s new major mining center.
By the time China struck these two major blows, the war on crypto-currencies was more than clear, and crypto-currencies had clearly lost. The power of the law in China is quite significant, and while some believed that the Chinese crackdown had stopped, it seems that this is not the case, as the war against crypto-currencies continues, but now on social networks to censor the use of this asset class.
China closes social network accounts that talk about crypto-currencies
Today, the internet is not a safe space to talk about crypto-currencies in China either. While this may come as a surprise to some, it is to be expected. Economic and information control is something that has existed in China for a very long time, and this time it has become even more obvious.
According to the Cyberspace Administration of China, about 12,000 user accounts on social networks that focused on posting content related to crypto-currencies have been shut down. Much of this content was aimed at promoting crypto-currency investments, and since this activity is prohibited in China, it was more than obvious that the government would take action.
What the authorities are saying is that the cyberspace administration’s crackdown is really a crackdown on speculation and criminal activity that is related to the use of crypto-currencies. It is hoped that by closing these accounts, it will be possible to control investments in crypto-currencies to avoid coming into contact with terrorist financing, money laundering and speculation.
But that’s not all, as a recent report revealed that in addition to the 12,000 deleted accounts, some 51,000 messages were also deleted. These messages had to do with investing in crypto-currencies. It was reported that these messages claimed that by investing in crypto-currencies one could make money, and since this is illegal, the messages can no longer be found online.
As if that wasn’t enough, in addition to shutting down social media accounts and deleting messages, the Chinese government also shut down several other websites. These sites were apparently promoting crypto-currencies.
According to information provided by the authorities, the content of these websites taught how to mine crypto-currencies and also how to use crypto-currencies as an asset to be transferred without border controls.
It is clear that the measures applied by China are quite severe, but not surprising. In fact, it is expected that measures to prevent the use of crypto-currencies and any form of direct or indirect promotion of this asset class will soon be strengthened.
China remains fully convinced that the problem of speculation and fraud is related to crypto-currencies, and it will not rest until they are completely removed from the market. And we will surely see a bit more restrictive measures soon that will keep investors and any crypto-currency user on the sidelines.
In the meantime, the central bank’s digital currency project continues to develop, and when it is in circulation, we can be sure that crypto-currencies will not interfere with government measures.