China’s ban on the events that promote cryptocurrencies has been extended beyond Beijing to now include the special economic zone in Guangzhou southern China.
Established in the 1980s, the Guangzhou Development District is one of the first special economic zones in China. On 24th August, the district issued a notice that stated a ban on hosting events that intended to promote cryptocurrencies. “Maintaining the security and stability of the financial system” was cited as the primary reason for the ban.
This notice first got reported by National Business Daily, a Chinese financial newspaper and later South China Morning Post confirmed the same with local authorities. The latest ban on crypto-promoting events follows in line with the one imposed by Beijing’s central Chaoyang District on 17th August. The central district banned hotels, shopping malls, and office buildings from hosting such events, after a local event by an overseas cryptocurrency exchange was organised in the area.
These bans along with the shut down of over eight blockchain and cryptocurrency based digital media outlets by WeChat are all an extension of China’s crackdown on crypto-based crowdfunding in the September of 2017. This ban comes just a few days after the country’s central bank People’s Bank of China issued a warning about the practice of illegal fundraising under the banner of blockchain and cryptocurrencies.
The Chinese authorities have repeatedly made it clear that even though certain government initiatives are adopting the underlying technology, i.e. blockchain, they are not in support of ICOs and cryptocurrencies. These instruments have been looked down upon given the fear of financial instability and chaos. At the same time, the authorities have spent close to $3 billion on blockchain powered companies.
“Politics. That and manipulating prices via releasing statements and news is a common practice among various countries. One week it’s banned, the next week it embraced. Now we’re back to banned again,” commented a Reddit user regarding the current state of affairs in China’s crypto space.