- China is imposing stricter censorship and rules on crypto activities.
- First it cracked down on crypto mining, then it blocked out crypto exchanges online.
- Interest in China for crypto is falling as a result.
Beginning with its crackdowns on miners in the country, all the way to its blatant blocking of leading exchange websites online, China is turning out to be no friend to crypto.
On 9 June, a western Xinjiang district government issued a notice “to immediately suspend virtual currency mining enterprises”. The report announced that companies mining digital currency must stop production by 2 PM on the same day. They must also report the suspension to a local reform commission.
The sudden announcement resulted in major drops in global hashing power. Just the Chinese-backed Ant Pool dropped by more than 30%. It seems as if China is preparing to meet its carbon emissions targets by speeding up the miner-sweep in local crypto hubs.
In other crypto-blocking practices, Chinese search engines Baidu and Weibo have blocked keyword searches for Binance, Huobi, and OKEx crypto exchanges. As per a report, users continue to see no result whenever they type Binance, Huobi, and OKEx.
Specifically, Binance has registered in many other countries and yet China still limits its operations. Not limited to this alone, keyword searches including “Binance Academy” and “Huobi Research Center” are inaccessible.
Naturally, many are thinking that the Chinese government authorized these unfriendly keyword restrictions on these popular exchanges.
Moreover, China’s microblogging platform Weibo also suspended lots of Bitcoin (BTC) accounts respectively. With a brief explanation of accounts suspension, Weibo passed a message claiming that owners of the accounts violated laws and guidelines.
With this, it seems likely that users in China are not as interested in cryptocurrency as they once were. Feels like a classic case of out of sight, out of mind. In fact, following these intense few weeks of regulation, searches for Bitcoin on China’s social media have dropped. The popular social media app WeChat recorded only 1-3 million searches per day. This is in stark contrast to May interest peaks of over 10 million.