China Escalates Crackdown on Crypto Ads with New Rules

China has introduced strict new regulations targeting online marketing of financial products, with a specific focus on banning promotions related to cryptocurrency issuance and trading. The measures, finalized on April 21 and set to take effect on September 30, reinforce the country’s long-standing prohibition of crypto activities.

Under the “Administrative Measures for Online Marketing of Financial Products” (Announcement No. 9), only licensed financial institutions or authorized third-party platforms can engage in online marketing of financial products. The rules explicitly classify digital currency issuance and trading—alongside illegal forex margin trading—as unlawful financial activities. This builds on the People’s Bank of China’s 2021 declaration that all cryptocurrency transactions are illegal.

The measures aim to curb deceptive or aggressive promotional tactics, including livestream sales and viral campaigns, often used to market high-risk financial products. Regulators have warned that content creators, platforms, and intermediaries facilitating such promotions could face legal consequences.

China’s regulatory push reflects its broader efforts to tighten control over its financial system. The country had already banned domestic crypto trading platforms, mining operations, and financial institutions from offering crypto-related services. By targeting digital marketing, authorities are closing a loophole that allowed crypto promotions to persist despite the existing ban.

Global Trend: Regulators Eyeing Finfluencers

China’s actions echo a growing global focus on financial influencers, or “finfluencers.” Italy’s securities regulator, CONSOB, recently amplified guidelines from the European Securities and Markets Authority, reminding influencers that EU investment rules apply to crypto promotions. Similarly, Australia’s ASIC warned of the risks posed by social media personalities and AI-driven investment advice, with survey data showing 23% of Gen-Z investors holding crypto, many influenced by online content.

In the UK, the Financial Conduct Authority (FCA) led a coordinated global effort last week targeting illegal financial promotions. The initiative involved regulators from 17 jurisdictions, resulting in criminal proceedings, dozens of warning alerts, and over 100 takedown requests for illicit content on social media platforms.

For China, the latest rules are a clear signal that it intends to leave no room for crypto activity, even in the digital marketing space. With the September 30 deadline approaching, platforms and influencers operating in China will need to tread carefully—or risk severe penalties.

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