China suspends cryptocurrency-related accounts from social media platform: Report

Chinese social media accounts related to cryptocurrencies were blocked over the weekend by Sina Weibo, reported Global Times on June 6. The blocked accounts had followers ranging from several thousand to several hundred thousand and featured some of the most prominent players in the virtual currency system including Trader Xiaoxia, Fat Nerds Bitcoin, Super Bitcoin and Blockchain William. Reportedly, some of the barred account owners are billionaires owing to investments in cryptocurrencies. 

The latest move over the weekend came as China continues to scrutinise the digital currency industry in order to prevent what they call systematic financial risks as well as illegal activities including money laundering. As per the report, the suspensions of accounts related to cryptocurrencies were apparently accrued out by Sina Weibo, the Chinese social media platforms. Reportedly, on searching those accounts on the platform, Sina Weibo shows that they’re blocked because they are suspected of violating relevant laws and regulations concerning the platform’s community conventions. 

The media outlet also stated that China’s industry observers and insiders believe the blockages as the latest signal of China’s stricter supervision of the humungous cryptocurrency industry. Wang Peng, an assistant professor at the Gaoling School of Artificial Intelligence at the Renmin University of China told Global Times following the suspension of accounts, “This is another strike against the industry chain after the recent crackdown on Bitcoin mining. It specifically targets upstream sectors such as marketing for initial coin offerings (ICO), as well as sales and investor acquisition.”

China bans crypto exchanges last month

Earlier, China on May 18 announced that country’s financial institutions and payment companies from providing any services related to cryptocurrency transactions and has even warned the investors against speculative crypto trading. The latest crackdown by Chinese officials, according to a Forbes report, is in light of the market’s recent volatility. It also marks another blow to the nascent market reeling from one of its biggest sell-offs ever after booming institutional adoption helped to reach highs during the COVID-19 pandemic. 

Under the ban, Chinese financial institutions are not allowed from offering clients any service involving cryptocurrencies. China’s three industry bodies said in a joint statement on Tuesday, “Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people's property and disrupting the normal economic and financial order. Judging from the current judicial practise in my country, virtual currency transaction contracts are not protected by law,” it added. 

IMAGE: AP