Adoptions of virtual currency have been met with a lot of challenges in different regions and in different platforms. The major challenge has been in the area of advertisement. Previously virtual currency promotion was banned in various social media like facebook and even in Google platforms.
Different countries have also had different approach when it comes to adoption of virtual currencies. Some are for it while others are against. One of the countries that seem to be against virtual currency, as its office of the leading group for Financial Social Risk Prevention and Control of Chaoyang District of Beijing had issued on August 22 a notice, of prohibiting Virtual coin promotion activities. This was to notify all shopping malls, hotels, office buildings and other places within the mentioned areas, from undertaking any form of virtual currency promotion.
China continues with the drive against virtual currency
Recently, the Financial Development Bureau of Guangzhou Development Zone issued a notice to the Economic Development and Information Technology Bureau of Guangzhou Development Zone ordering them to prohibit hosting of virtual currency promotion activities. This was confirmed on August 29th by the Daily Economic News reporter. Guangzhou Development District was established in the 1980s it’s well known in china for being one of the special economic zones.
According to National Internet Finance Risk Special Rehabilitation Leading Group, this move was intended to protect the property rights and interests of the public, safeguard their currency status, prevent money laundering and be able to maintain security and stability of their financial system. The notice, “Cleanup and Remediation” is a directive to all relevant units in the district to not undertake any form of virtual currency promotion and publicity activities. This heavy blow on the domestic crypto space in China is meant to cover up the loopholes in the system, which may allow Chinese investors gain exposure to ICOs and crypto trading.
Effects of the notice
WeChat, one of China’s biggest messaging app blocked accounts that were related to crypto or blockchain, this included Deepchain, Coindaily, Huobi News and Jinse. They were accused of publishing crypto related promotional articles that were in violation of the earlier introduced regulations.
Technological giants in China are also working on keeping the regulation. This is evident in one of the biggest search engine in China; Baidu shut down all its popular cryptocurrency chat forums. Following in suit is Chinees e-commerce giant, Alibaba who have announced that it will ban accounts that will be found engaging in any form of crypto trading.
It was previously estimated that 90% of all previous Bitcoin transactions around the globe involved Chinese Yuan currency, but after the ban, the number have been reported to decrease to 15%.This is to show the immerse effect the ban will have in the cryptocurrency world.