China Increases Its Policies Regarding Cryptocurrency With Baidu, Tencent And Alibaba Blocking Crypto-Related Activities

Restrictions against cryptocurrency in China intensified today, August 27, after renowned technology companies such as Baidu, Tencent and Alibaba blocked forums related to cryptos and cryptocurrency exchanges. The measures come amidst a new escalation by the Chinese government, which is even trying to minimize the conversations of thousands of users about digital assets.

In the case of Baidu, China’s leading Internet search engine, the ban covers the cryptocurrency forums, according to information disseminated by local media. According to the report from other digital media, a person related to Baidu who did not want to be identified claimed that the measure was taken in “conformity with relevant laws, regulations, and policies.”

As for Tencent and Alibaba, which provide Internet and e-commerce services, respectively, they have reported that they will maintain monitoring to prevent their mobile payment services from being used for transactions involving cryptocurrencies.

On August 24th it was announced that AliPay would supervise the transactions with cryptos in China to restrict or suspend the operations suspected of being involved in the purchase and sale of cryptocurrencies.

China intensifies the cryptocurrency regulations

The decisions taken by the before-mentioned companies come in addition to the measures imposed by local authorities, such as the one announced last Thursday, in which events related to cryptos became banned in hotels and shopping malls in Beijing’s Chaoyang district.

Overall, it was also reported that some 124 foreign cryptocurrency exchange platforms operating across China would be banned to minimize the exchange of cryptos further.

The increase in official regulation began in September 2017, when China issued a measure in which the Central Bank banned the Initial Coin Offerings (ICOs) because “ICO projects are suspected of illegally raising funds and probably committing fraud.”

Since then, the official position was against cryptocurrencies and any mechanism related to digital assets. However, in the midst of this whole ecosystem landscape, China does welcome the potential of blockchain technology.

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About the Author: Anna Galvez

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