China was among those nations which initially supported and admired cryptocurrencies. However, the country abruptly banned cryptocurrencies and suspended all the crypto related operations. From transaction, investment, trading to even crypto mining, China banned all the activities. Now, China reportedly shut down up to 13,000 social media accounts allegedly promoting crypto investments.
Reports suggested that China took this action in the wake of prohibiting promotion of crypto assets anyhow in the region. On Tuesday, the Cyberspace Administration of China (CAC) announced along with banning 13,000 accounts, approx 51,000 crypto related posts were deleted and 105 websites containing crypto related information, were shut down.
The Chinese authority further explained the motive behind their actions. The account deletion campaign, CAC said, came in order to impose the Chinese Communist Party’s (CCP) decision. CAC added that Communist Party earlier identified a bunch of such accounts through secret tips from different social media users.
CAC iterated their objective to continuously clamp down on financial activities in cryptocurrencies. Since transactions in crypto are considered illegal financial activities given the ban on crypto and related operations, agencies were keen to eliminate every possibility for any instance of crypto activity and their promotion.
However, the crackdown and restrictions might not have resulted in its objective. In terms of cryptocurrency mining, China still holds second position where miners produce a combined mining hashrate of 21%. This is when most miners chose to leave the country after the mining ban in China.
Even at this time, the circle of restrictions is getting intense grappling with other crypto innovations. Take an instance of Web 3 firms relocation to different countries like Singapore in efforts of leaving China. CCP had imposed several strict restrictions and applied stringent policies considering the zero-Covid policy. Furthemore, there is no indication of when these restrictions will be there and continue to have an impact on businesses.
Source: https://www.thecoinrepublic.com/2022/08/10/chinas-action-against-crypto-investment-promotions-banned-13k-accounts/