A slew of crypto-related accounts in the Twitter-like platform of China, Weibo, got blocked over this weekend. Beijing has stepped up for a crackdown on bitcoin trading and mining. More actions will include the linking of illegal activities in China directly to the country’s criminal law.
In the previous month, China’s State Council or the cabinet vowed to crack down on bitcoin mining and trading. Also, they took part in escalating campaigns against cryptos after three industry bodies put a ban on crypto-related payment and financial services. Over this weekend, access to many widely followed Weibo accounts got denied. The message that came read, “violates laws and rules.”
The Weibo bitcoin commentator or Key Opinion Leader said it is a Judgement Day for crypto KOL. She calls herself “Woman Dr. bitcoin mini.”
Her main account also got blocked on Saturday.
NYU Law School Professor, Winston Ma, said that the government makes it clear that no Chinese version of Elon Musk can exist in China’s crypto market.
Ma is the author of the book “The Digital War.” He expects China’s supreme court to go on publishing a judicial interpretation. The interpretations must be able to link crypto mining and trading of businesses with China’s body of criminal law.
The view also got echoed by the financial regulator. He said such an interpretation would address the legal ambiguity, which has failed to identify the bitcoin trading business as illegal. All the rules are against cryptos in China, which the administrative bodies have published.
The Weibo freeze comes since the Chinese media came forward to report against crypto trading. The official Xinhua News Agency has published an article exposing a series of scams related to crypto. State broadcaster CCTV said that cryptos are a lightly regulated asset that is often used in purposes of black-market trading, arms smuggling, money laundering, etc. This crackdown also came as China’s central bank is accelerating the testing of its indigenous digital currency.