China has issued a fresh order on investigating alleged links of cryptocurrency being involved in illegal money laundering in traditional black markets, and has adopted the policy of crackdown and blocked several cryptocurrency accounts on Weibo to assert and establish control on ongoing Bitcoin mining practices.
Beijing woke up to a fresh administrative rule where the Chinese authorities had blocked several social media accounts of cryptocurrencies circulating on Weibo because of increased illegal activities related to Bitcoin mining and crypto laundering. The authorities have also indicated more strict actions will be taken to curb the criminal activities linked with escalated illegal crypto and BTC laundering.
China Imposes Restriction over BTC Mining and Crypto Usage
Similar activities have been noted in China for the past month where the authorities of the China State Council have metaphorically vowed to impose strict restrictions on BTC mining processes and trading. The order has caused a visible uproar among investors and has made BTC prices fall noticeably after the official announcement.
China’s social media platform Weibo over the weekend had blocked social media accounts of major cryptocurrencies and Bitcoin units and clarified their action of banning BTC trading as a violation of criminal laws.
Investor’s Reaction on Weibo Crypto Ban
Weibo followers have been making active comments on this fresh freeze and have been calling it a judgment day for all crypto investors in China. The view was further amplified by the Chinese media that was found reporting the accelerated crypto ambiguity in the Chinese market linking it with the violation of major laws and rules.
Several attempts of investors to access the social media accounts of bitcoin and other cryptocurrencies were thwarted as the ban caused a visible stir in the Chinese finance market. Official Chinese Media Channels such as Xinhua News agency have also been actively documenting via written articles on how cryptocurrency and Bitcoin were embroiled in illegal mining and were circulating in the black market as a premium digital asset to be used in purchasing illegal arms, gambling, and drug dealings.
The crackdown arrives at a time when China has been actively pursuing the idea of centralizing the digital financial sector of the country by introducing its own cryptocurrency.
Juhi Mirza is an archaeological major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.