Sina Weibo, a social media giant in China with over 258 million daily users, took decisive action this week by suspending 80 accounts that were promoting cryptocurrencies. These accounts had amassed more than 8 million followers and were accused of violating several regulations, including those related to banking and network security.
This isn’t the first time China has targeted cryptocurrency influencers. Since the nationwide ban on cryptocurrency transactions in September 2021, there have been multiple purges. The largest of these occurred in August 2022 when 12,000 accounts were deleted for promoting cryptocurrencies. The ongoing crackdown aims to protect citizens from financial risks associated with crypto speculation, according to official statements.
A Balanced Approach:
Interestingly, despite the hard stance on cryptocurrencies, Chinese President Xi Jinping recently acknowledged the importance of blockchain technology. He stated that China highly values the development of the digital economy and considers technologies like blockchain as pivotal. This marks a significant differentiation between China’s support for blockchain technology and its opposition to cryptocurrency trading and speculation.
Next Steps and Future Outlook:
The Chinese government is also making strides in the development of the “digital RMB,” aiming for it to work seamlessly with other payment platforms like WeChat and Alipay. While it’s clear that China sees value in digital technologies, it will continue to strictly regulate cryptocurrency activities to prevent financial risks.
While China is optimistic about blockchain’s future applications, it remains vigilant against cryptocurrency trading. Influencers and opinion leaders in the crypto space continue to face suspensions and account deletions, underlining China’s effort to draw a line between blockchain technology and cryptocurrency speculation.