TL;DR Breakdown
• Weibo to block promotional accounts immediately.
• Beijing fights against cryptocurrencies and tries to block Bitcoin trading.
The Chinese social network Weibo supports the Chinese government’s repression against cryptocurrencies. This Twitter-like platform has banned several accounts associated with virtual currencies and their marketing. The social network is directly associated with the popular government’s announcements against the trading market.
Many crypto experts think that the social network lockdown is the biggest in all of history. Never has a social network so popular in China done took such a step while being backed by higher authorities.
Beijing called for cryptocurrency trading to be banned and the mining process to stop. These demands have been maintained for the last two weeks, and the authorities have continued to exert more pressure.
Several cryptocurrency exchange systems suspended their accounts in China which were registered with a Chinese phone. Then the Bitcoin mining center in Inner Mongolia upheld the crypto regulations of the region. This latest move has landed a heavy hit on crypto traders, who have continued to work regardless.
Weibo restrictions are just the tip of the iceberg
Although Weibo’s blockages to cryptocurrency accounts were severe, it seems to only represent the tip of the iceberg. Many Chinese investors note that the crackdowns in China have increased and that they are working at their own risk. The law does not protect these people, so they would most likely be in fear of being caught.
Besides Lower Mongolia, other mining agencies have decided not to ban the trade outright. The measure will be applied in the coming days so investors can adopt it gradually. Mining regions like Sichuan have notified users looking for alternatives to mining in China.
As reported by various sources on Weibo, before being banned, the Bitcoin price dropped below $36,000. This collapse was a trend on Weibo and other Chinese social networks where investors showed their discontent.
The cryptocurrency remains in a range of $35,000-$36,000 in the last 24 hours.
After the Weibo announcement, the social network agent revealed that their the blocking would only happen to crypto promotional accounts. The public accounts will remain intact, so they can talk and speculate on cryptocurrencies without any issues.
The crypto crackdown in China is also supported by news from Beijing and its fight for carbon neutralization. The popular government believes that the total ban on cryptocurrencies is the best route to take. However, the measures imposed by the authorities are might not seem clear enough to be commensurate to the reasons to block the Bitcoin market.
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