Key Takeaways:
- 105 websites dedicated to advocating virtual currency marketing, publishing, and pushing explainers on cross-border currency speculation and virtual currency mining were closed.
- Social media giants Weibo, Baidu have closed 12,000 illegal accounts that promote virtual currency investments.
- CAC encouraged users not to participate in virtual currency trading speculation activities.
The Cyberspace Administration of China(CAC) is cracking down on illegal digital asset websites. In its latest announcement, The Chinese regulator said the social media platform Weibo, and internet giant Baidu have closed 12,000 illegal accounts such as “ICE Blizzard Entertainment Founder” and “Currency Circle Expert.”
The press release states that these websites have cleaned up over 51,000 units of illegal information, which includes misleading claims such as “invest in Bitcoin to make money easily.”
To strengthen supervision and inspection in the virtual asset sector, 105 websites dedicated to advocating virtual currency marketing, publishing, and pushing explainers on cross-border currency speculation and virtual currency mining were closed. It has also guided the local network information department to interview over 500 business entities dealing with virtual currency publicity and speculation.
The regulatory body plans to continue cooperating with relevant departments to strengthen the crackdown on illegal financial activities related to virtual currency. CAC, in its press release, also urged users to establish correct investment and encouraged them not to participate in virtual currency trading speculation activities.
However, this is not the first time CAC has increased its scrutinization of the crypto sector. The body has put a watch on websites and accounts that promote crypto education and induce virtual currency investments. Established in 2013, CAC’s initial mandate was to regulate online content, authorized by the State Council, China’s cabinet. Now it has grown into a regulatory behemoth that affects virtually every internet company in China.
Last month, the regulatory body cracked down on counterfeit investment platforms as part of the country’s campaign to combat such telecom network crime. CAC then said it has investigated and cracked down on some 42,000 counterfeit apps since the start of the year and incorporated them into the national fraud-related database.
CAC’s latest announcement is fueled by the Chinese Government’s increased crackdown on cryptocurrencies. Since the crackdown began in 2021, large crypto miners and exchanges like Huobi have set up shop in other countries, drastically reducing China’s share in the global mining hashrate.
