By Shelly Melancon (Switzerland)
Leading social media platform in China, Weibo has banned multiple social accounts on its platform associated with cryWeibopto promotion. The banning spree came as a result of requests from the central government for a crypto crackdown in the country.
Crypto organizations and users in China have been hit with a lot of downs in the past week. The Chinese governments have reaffirmed its lack of support for Bitcoin and other cryptocurrencies and crypto users are feeling the effect.
A report from Wu Blockchain reveals that the recent banning of multiple crypto accounts by Weibo, the Chinese equivalent of Twitter, seems to be the harshest crypto suspension in history. It has also been speculated that the actions taken by the social media company is to cooperate with the recent Beijing crypto crackdown policy.
Over the past weeks, Beijing has raised concerns about crypto mining activities in its region and has imposed strict regulations against crypto trading and mining. Reacting to the prohibition, several crypto exchanges put a hold on rendering services to Chinese based accounts. To make matters worse, one popular BTC mining hub subsequently made an announcement to prohibit the mining of BTC and all other crypto assets in the region of Mongolia.
Despite the intense opposition to Bitcoin in China, industry insiders have suggested that the crackdown may not be as terrible as it seems. This declaration was made due to the fact that Chinese users were informed that they have the freewill to trade cryptocurrencies at their own risk.
The Xinhua news agency which is owned by the state published several articles regarding digital currencies in China. In one of the articles, it noted that people have the freedom to buy and sell Bitcoin and other crypto assets if they are only traded as virtual goods. It also mentioned that each individual is responsible for his or her decisions as regards crypto trading, while warning its audience of the risks associated with cryptocurrencies due to it’s high volatility.
Meanwhile, some other prominent Bitcoin mining regions in China have shown their lack of support for the immediate ban on miners. The executives in Sichuan are displeased with the sudden ban, and have refused to come to terms with it. However, they have notified miners in the region of the recent development and have implored them to start making plans for a change in location against the next season.
The Effect of the News on the Price of Bitcoin
Interestingly, the news did not affect the price of Bitcoin weightily. Although the price of Bitcoin dropped slightly below $36000 following the news about the social media purge, the price quickly bounced back and currently trades around $36500. Thanks stat of the highly priced crypto asset reveals that it has dropped by just 0.7% in the past 24 hours.
The stance against crypto mining in China is largely due to Beijing’s push to reduce activities that deplete the ecosystem and promote carbon neutrality. Should miners find a more efficient means to carry out their activities, the regulations may be lifted.
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