China Block Weibo Crypto-Accounts

Written By
G. Dautovic
May 15,2024

Over the weekend beginning June 5, China blocked a number of cryptocurrency-related accounts on Sina Weibo, a social media platform similar to Twitter. Experts believe that other similar measures are yet to come.

The Chinese government has launched two large crackdowns on crypto activities over the past decade. In 2013, China’s central bank banned financial institutions from using Bitcoin, while in 2017 it expanded the ban to encompass all cryptocurrencies and initial coin offerings (ICOs). As the 2017 rules also prevented trading platforms from converting cryptos into legal tender and legal tender into cryptos, many of them shut down or moved offshore. 

Before China made the exchange of crypto illegal, local investors were responsible for approximately 80% of all crypto trading. 

Last month, the Chinese authorities announced an escalation of their anti-crypto efforts by prohibiting financial institutions from providing any services that involve cryptocurrencies. The three industry bodies that complied with these regulations are the National Internet Finance Association of China, the Payment and Clearing Association of China, and the China Banking Association. As a direct result of this, the world’s largest cryptocurrency fell sharply amid a hectic trading frenzy. 

Another consequence of the May announcement was that digital currency miners such as HashCow and BTC.TOP have halted almost all of their China operations. This is sure to cause a significant impact on the global crypto supply, since according to certain statistics, nearly 70% of crypto mining occurs in China.

Now, the Weibo accounts associated with cryptos can no longer be accessed. People who try to do so receive a message saying that the account “violates laws and rules.”

The government makes it clear that no Chinese version of Elon Musk can exist in the Chinese crypto market,” tweeted Winston Ma, an adjunct professor of law at NYU. Ma was referring to the frequent crypto endorsements of the Tesla boss, whose Twitter activity has often had drastic effects on the crypto trading market.

About author

I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.

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