The Escalation of Banning Cryptocurrency Promotion in China

Blockpulse360

Within 24 hours after yesterday’s news that the most important social media in China, Wechat, banned some most influential crypto media outlets, an article from “Front Line”of Tencent News was released, reporting that the Leading Group Office of Financial Risk Prevention and Control of the Chaoyang District, Beijing, sent out an official statement banning cryptocurrency promotion in its area. The areas targeted were shopping malls, office buildings, hotels and other commercial buildings.

The article also noted that similar actions that were taken in the Chaoyang District are also appearing in other parts of the capital city. Regulatory pressures have already effected two events that shut down in light of the new situation.

It is not a coincidence that more and more cryptocurrency conferences in Hongkong, Macao, Japan, S.Korea, Bankok, and U.S. are held by Chinese projects launchers to attract the investors to find a safe harbor to gather.

A worker with the Leading Group Office of Financial Risk Prevention and Control within the Chaoyang District announced that the order was already written, but released to the various agencies this week. The worker then went on to say:

“An official order like this is needed to deal with potential risks.” “We have recognized potential risks of Internet finance and virtual currency for a while.”

 

For one thing, it is true that the ICOs are risky investment instruments and is very easily to lead to Ponzi scheme and each government has the legit interests to protect the people from involving such activities. On the other hand, it is questionable that whether all the conferences regarding blockchain are scamming people. Due process is worldwide standard for modern governments. Banning the conferences by the official statement is inevitably harming the fundamental rights for people to assembly. Comparing to the U.S., President Donald Trump signed an executive order this July in part to investigate the cryptocurrency fraud. Though it might take times to do the investigation, the key is to follow the rule of law.

We do agree that the fraud in cryptocurrency market shall be investigated and prosecuted. But we also call for the protection of the fundamental rights such as free to assembly and express. Looking at the actions taken by U.S. is a good opportunity to learn how to control the same threat of cryptocurrency facing all the governments in the world.

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