China’s Cyberspace Administration Issues Warning Over Cryptocurrency Promotional Materials

The China Cyberspace Administration (CAC) has issued a new warning regarding “illegal information, accounts and websites” promoting cryptocurrency on August 9.

CAC on a mission to clean up cryptocurrency propaganda

In May 2021, authorities have cracked down on proof-of-work mining. This was soon followed by the People’s Bank of China which enacted a complete ban on cryptocurrency transactions in September 2021. The central bank said that virtual currencies facilitate financial crime and pose risks to the financial system.

However, nearly a year after the transactions were banned, China’s internet regulator said online “related activities” continued to proliferate. While committing to “cleaning and curating” internet content that promotes and promotes digital currencies

“With the rise of virtual currency, related activities such as speculation, hype and fraud have become increasingly intense.

The agency argued that such material is false propaganda, such as promising high returns, and that participation will result in financial loss.

Some netizens are confused by the false propaganda such as high investment returns in virtual currency and blindly participate in related business activities, which causes more damage to their own property.

The advisory reminded websites of their responsibilities to follow previously published guidelines on this matter. He added that, in accordance with the rules, Weibo and Baido removed 12,000 users who violated the guidelines, deleted 51,000 posts about cryptocurrency promotional material and shut down 105 websites.

The CAC said it would continue to crack down on “illegal financial activity” related to cryptocurrency to protect people’s safety.

China’s anti-crypto stance

A recent article by Bitcoin Magazine speculated that China’s tough stance on Bitcoin and cryptocurrencies boils down to “central planners” trying to cling on to power and control, while trying to keep the fiat system going.

“ban bitcoin – a pure outgrowth of the free internet and rejection of centralized power, an essential tool in fighting the coercion of fiat.”

In particular, the author drew attention to China’s attempt to stem capital flight by using tight monetary controls. In conjunction with the Bitcoin ban, the coin is described as an attempt to “seal off all possible escape routes.”

Worse still, the scope of control increases under one digital yuan, which may explain why China is pushing hard for a nationwide rollout.