China Crackdowns Hard on Crypto Investment Sites

China Crackdowns Hard on Crypto Investment Sites

There were 105 websites that were taken down because they promoted the marketing of virtual currencies, published explainers on cross-border currency speculation, and pushed explainers on mining virtual currencies.

Weibo and Baidu, two of the largest social media platforms in China, have each terminated 12,000 fraudulent accounts that promoted the purchase of virtual money.

Users were strongly discouraged from engaging in speculative trading activities using virtual currencies by CAC.

The Cyberspace Administration of China (CAC) is intensifying its efforts to shut down unlawful websites dealing in digital assets. The Chinese regulatory body stated in its most recent announcement that the social media platform Weibo and the internet giant Baidu had shut down 12,000 illicit accounts, including ones with names like “ICE Blizzard Entertainment Founder” and “Currency Circle Expert.”

According to the press release, these websites have removed over 51,000 pieces of illegal information, some of which included deceptive statements like “invest in Bitcoin to make money easy.”

105 websites that advocated virtual currency marketing published explainers on cross-border currency speculating and pushed virtual currency mining were shut down as part of an effort to tighten supervision & inspection in the virtual asset industry.

In addition to this, it has directed the local network information department to conduct interviews with over 500 commercial entities dealing with publicity and speculation over virtual currency.

The regulatory body intends to continue working together with the relevant agencies in order to step up enforcement against unlawful financial operations involving virtual currency. In its news statement, CAC recommended customers build correct investing strategies and discouraged them from engaging in speculative activities related to virtual trading currencies.


Not the first time CAC has acted

On the other hand, this is not the first time the CAC has raised the amount of attention it pays to the cryptocurrency industry. The organization is keeping a close eye on websites and accounts that encourage users to become educated about cryptocurrencies and invest in those currencies.

The State Council, which serves as China’s cabinet, gave the CAC the authority to regulate content posted on the internet when it was first established in 2013. At this point, it has developed into a regulatory behemoth that significantly impacts practically all internet companies operating in China.

As part of the country’s campaign to prevent such telecom network crime, the regulatory agency conducted a crackdown on fake investment platforms one month ago. The CAC then stated that it has examined and taken action against around 42,000 fraudulent apps since the beginning of the year and that these apps have been added to the national database that is related to fraud.

The Chinese government’s growing efforts to suppress cryptocurrency activity are a driving force behind CAC’s most recent declaration. Since the crackdown started in 2021, big crypto miners & exchanges like Huobi have relocated their operations to other countries, which has resulted in China’s portion of the global mining hashrate decreasing by a significant amount.

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