Beijing’s Chaoyang District has banned crypto related events to “safeguard the status” of Yuan which has kept falling against the dollar since spring. According to a translation the notice said:
“To protect people’s property and safeguard the status of legal tender, to guard against money laundering risks and maintain the stability of the financial system, all shopping malls, hotels, restaurants, offices and other places shall not undertake any form of cryptocurrency-related promotion activities.”
The prohibition is limited to the Chaoyang District, a central area in Beijing home to some 3.6 million people as well as a growing business district with their skyscrapers. The notice further said:
“We have monitored risks in the internet finance and cryptocurrency space over the past days. A crypto asset management platform named Bit-up recently held an illegal activity to promote its crypto products in the district, which triggered local regulator’s attention.”
BitUP appears to be a crypto index fund with their token seemingly acting similar to a share in a traditional index fund as they claim the token would reflect gains from the assets BitUP invests in with the start-up claiming to have “professional investors from Wall Street and Silicon Valley.”
They have seemingly angered the bureaucrats in authoritative communist China where WeChat banned from their platform a number of crypto media under the justification that ICOs are illegal in the world’s second biggest economy.
According to South China Morning Post, WeChat’s action was in response to regulations enacted earlier this month whereby internet entities are held accountable for enforcing regulations. They say:
“Tencent, operator of WeChat, said in a statement that it has shut down these accounts permanently as they are ‘suspected of publishing information related to ICOs [initial coin offerings] and speculations on cryptocurrency trading.’”
A number of crypto accounts were banned, including Jinse Caijing which has some 350,000 daily readers according to Asia Today with Alexa giving them a ranking of a top 2,000 website in China.
Jinse does not appear to have reported on the censorship on their own website, but they did apparently break the story about Beijing censoring crypto events.
These developments seem to follow Yuan’s plunge against the dollar with devaluation continuing in China as CNY now nears the sensitive level of 7 CNY to the dollar.
The authorities there are seemingly facing some pressure as their money keeps losing value, with Trump in addition coming on top during the recent trade “war” which led to a weaker Chinese economy while US is booming.
Trump is trying to open the protectionist Chinese market where intellectual property theft is rampant and unchecked in addition to addressing what Trump considers cheating through monetary devaluation.
However, international corporations, like Google, are seemingly happy to work with the authoritarian Chinese government, sending there much of the manufacturing production, including hardware and IoT.