China Is Cracking Down on Cryptocurrency


China: Government instructs venues not to host crypto-currency events

Cryptocurrency adoption in China has hit a new roadblock as the district government in Beijing has officially banned commercial properties from hosting any crypto-currency event, including “crypto-currency talks and promotion.”

The document, circulated online, stated that the district government has instructed restaurants, shopping malls, restaurants, and office buildings in the city to not provide their premises for any activity related to the promotion of cryptocurrencies. The circular or document was issued on the 17th of August from the Beijing Chaoyang district financial service department.

A report in a local newspaper said a department official confirmed the authenticity of the circular. He added that the document is real, and the instructions have followed as a result of some recent observations gained from promotional activities that took place in commercial properties. . The official did not give further details.

Based on the document, however, the financial service department intends the action to protect the financial safety of the public, to strengthen the position of China, and also to establish the national currency – Chinese yuan, as the sole legal currency in China.

The document also stated saying that, “The legal currency of China is Chinese yuan and we also order all the shopping mall, restaurant, hotel and office building in China not to provide venues or places for any events that promotes or talks about cryptocurrency, and if there is any event or promotion then it must report to the police or the government authority if such activities were found in any of this places.”

In April this year, a conference based on blockchain in Shanghai was stopped by the police and then cancelled. Rumours emerged at the time it was due to the presence of an initial coin offering project booth at the event. Chinese crypto-currency media on China’s messaging giant WeChat, was also under the government scanner.

Guangzhou tech hub follows Beijing footsteps, bans cryptocurrency events

A special economic zone (SEZ) in Guangzhou, China is following Beijing financial district in banning activities that promote cryptocurrencies as the crackdown on digital money extends beyond the country capital of Beijing.

According to local news reports, The Guangzhou Development District, which was established in the 1980s as one of China’s first special economic zones, issued a notice to local businesses on August 24, banning them from hosting any crypto-related events or promotions. It cited maintaining the security and stability of the financial system as part of the reason.

The development comes days after the authorities in Beijing Chaoyang district issued a similar notice to hotels, shopping malls, restaurants and official buildings, according to a report in a local newspaper.

The notice was first reported by the National Business Daily, Chinese media and confirmed with local authorities by the South China Morning Post. It follows a similar ban on cryptocurrency as ordered on August 17 by Beijing.

Both the moves restricted to the districts in question are the latest examples of China intensifying crackdown on cryptocurrencies, which began last September with bans on crypto exchanges and initial coin offerings. ICOs are unregulated crowd funding methods involving cryptocurrencies. Despite central government initiatives on adopting blockchain and supporting blockchain, the underlying technology behind these virtual currency, Beijing has made it clear it does not want retail investors putting their money into cryptocurrencies.

Authorities in Guangzhou have said that the aim is to strengthen the Chinese yuan’s position as the legal currency in the country and to stabilize the country’s financial system.

The government of Guangdong province, where the city is situated, has opposed the step taken by the Guangzhou government. The provincial government had earlier published a notice ordering municipal and county-level governments to speed up the process of rolling out policies to support blockchain start-ups and accelerate adoption of applications related to the technology.

Guangzhou was established in the 1980s as one of the country’s first SEZs. The district is considered a hub for technological development in southern China.