Cryptocurrency is becoming less mysterious and more common each day. While cryptocurrency is getting more mainstream, it seems not everyone is keen to push forward with the futuristic financial model. In fact, China has officially implemented a number of new anti-crypto measures. However, they are not against tech and innovation, as China is using blockchain to build smart cities. Chinese tech giants Baidu, Tencent, and Alibaba have joined forces to put forth these new regulations and they are wasting no time doing so.
The New Anti-Crypto Measures for China
Baidu, Alibaba, and Tencent have each taken to their own platforms in efforts to prevent the rise of cryptocurrency. Baidu, Inc is a multinational tech company with headquarters in Beijing. The company specializes in internet-related solutions and AI (Artificial Intelligence). Many people consider Baidu to be the Google of China.
Recently, Baidu shut down two massive online crypto chat forums. These types of forums are of the utmost importance to crypto communities. Wide-spread communication platforms are incredibly beneficial for the sharing of information.
Tencent Holdings Limited is a multination investment holding company headquartered in Shenzhen, China. Tencent operates WeChat, the billion-user social media platform. As such, they have announced that they have banned crypto trading on their platform. Furthermore, they will be closely monitoring all transactions to block any which seem suspicious or crypto-related.
Finally, Alibaba, the wildly popular e-commerce company shipping worldwide, has stated that they plan to ban any accounts engaging in cryptocurrency related activities.
What Does this Mean for China and Cryptocurrency?
These new anti-crypto measures are notable in nature, but they are not the first of their kind. In fact, last week all commercial venues in Chaoyang District of Beijing were banned from hosting cryptocurrency-related events. Furthermore, regulations to monitor “loophole” cryptocurrency-related communication between investors have been put in place.
With decentralization being one of the most attractive features of cryptocurrency and blockchain, this excessive regulation is extremely counterproductive. Additionally, if key-players in technology and e-commerce are working against cryptocurrency, what could this mean for adoption rates? Crypto is already subject to skepticism and scrutiny from those outside the community. We fear these anti-crypto measures will not bode well for the public opinion of crypto.
As China cracks down on cryptocurrency, will other countries follow suit? Allegedly, Japan is working on some anti-crypto measures of their own.