Image Courtesy: jingtravel.com and economictimes.com
As China has been stepping up a crackdown policy on bitcoin trading and mining, its Twitter-like microblogging platform Weibo has blocked several cryptocurrency-related accounts.
According to South China Morning Post, over the weekend, at least a dozen influential accounts that posted about cryptocurrencies were not able to access their accounts. Widely followed crypto-related accounts were not only unable to access but also received a message that said the accounts “violate laws and rules.”
Analysts and a financial regulator have stated that more actions are expected, “including linking illegal crypto activities in China more directly with the country’s criminal law.”
Colin Wu, a journalist who runs a cryptocurrency news site, says that, “The total number of fans of these people is more than 5 million, and their influence on Chinese retail investors may not be less than Elon Musk.” The accounts banned were known for their investment recommendations.
In May, Beijing had banned banks and payment firms from providing services related to cryptocurrency transactions and payments. The government has persistently warned about the financial as well as environmental risks that come with cryptocurrencies. Nevertheless, as per The Guardian, China’s central bank is accelerating testing of its own digital currency.
A famous Weibo bitcoin commentator or key opinion leader (KOL), ‘Woman Dr. Bitcoin Mini’ whose main account was blocked on Saturday, wrote that it was a “judgement day for crypto KOL”.
The Xinhua news agency has published reports that expose a series of cryptocurrency-related scams. The State Broadcaster has acknowledged that cryptocurrencies are lightly regulated assets often used in black marketing, money laundering, arms smuggling, drug dealing and gambling.