- China bans online platforms from advertising cryptocurrency issuance and trading.
- New crypto regulation in China will not take effect until the end of September 2026.
- The People’s Bank of China says the latest rule is aimed at protecting online investors.
China has stepped up restrictions on cryptocurrency activities. The latest ban includes stopping online platforms from marketing virtual currency issuance and trading. According to reports, this is part of moves to strengthen the regulation of online promotion of financial products and better protect investors.
New Rule for Online Crypto Advertising
On Friday, the People’s Bank of China, alongside seven other regulatory agencies, released a set of administrative rules. They consider these rules tools to support the regulation of online marketing of financial products, bringing such activities under comprehensive oversight.
Despite publishing the new rules, they will not take effect until September 30. The group’s focus remains on how to address the risks associated with online platforms becoming a key channel for promoting financial products, even though they can potentially improve efficiency and accessibility. Regulators are more concerned about the platforms encouraging misleading advertising and disorderly competition.
A Comprehensive Guideline for Financial Institutions
For context, the new rules provide comprehensive guidelines for financial institutions and third-party online platforms engaging in marketing financial products. It requires them to remain within licensed business scopes while prohibiting support for illegal financial activities, such as illicit fundraising, unauthorized securities trading, and virtual currency issuances and transactions.
Chinese authorities are also enforcing algorithm-driven controls across online platforms, including livestream promotions. The regulators have banned terms that they consider misleading, such as “low interest rates” and “low thresholds” in loan advertising.
Shielding Consumers From Harm
The People’s Bank of China stated that the latest moves underscore the country’s efforts to enhance investor protection and shield financial consumers from harm. The bank aims to strengthen regulation across all financial activities to promote the healthy development of the internet finance sector.
China is famous for introducing cryptocurrency regulation at various levels. It is one of the countries with the highest number of restrictions issued against crypto activities. However, despite these bans, crypto community members believe a reasonable level of crypto engagement runs within the region. Many of them look forward to September 30 to see how the latest set of rules will play out.
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Source: https://coinedition.com/china-issues-another-ban-to-regulate-online-promotion-of-crypto-activities/