China started shutting down various cryptocurrency bodies last September. In a recent move, the country is shutting down blockchain news accounts. It has also banned hotels in Beijing from hosting any cryptocurrency related events.
The blockchain news-related accounts were shut down on WeChat messaging app, one of the premier apps in the country. This ban includes eight popular crypto media outlets. Notably, several of these companies were able to raise millions of dollars in the form of venture capital. In the wake of renewed regulations by the country’s internet watchdog, China blocked their official WeChat accounts.
Tencent, the company behind WeChat said in a statement that these accounts were permanently shut down amidst suspicion of publishing ICO (Initial Coin Offering) related news and predictions of crypto trading. While the WeChat accounts were blocked, the outlets are still operating their apps and websites.
The said regulations were enforced in early August by the Cyberspace Administration of China. The government body wants chat apps to comply with “national interest” and “public orders” when it comes to content.
On August 17th, the Chaoyang district of Beijing banned hotels, office building and shopping centers from hosting any events that promoted cryptocurrencies. This news came to light through a leaked document that was confirmed by the South China Morning Post. The ban is restricted to Chaoyang district for now.
While the government has shown a keen interest in adopting blockchain technology; The central government does not want retail investors in cryptocurrencies as it poses a threat to China’s financial stability.
A People’s Daily commentary accused these blockchain and cryptocurrency outlets of skewing the news to manipulate people and affect crypto prices. It further says that these outlets have capitalized on the volatile nature of cryptocurrencies and have made a fortune as a result of this process.