China’s social app WeChat, is the latest victim in the country’s crackdown on the cryptocurrency-related ecosystem. With several blockchain-related news accounts being blocked on WeChat.
China has mandated a ban on Initial Coin Offerings (ICO’s) back in 2017, due to the scams and unregulated nature of the product. This new ban on the social app is supposedly due to the non-compliance with “national interests” and “public orders”, because the accounts in question had been releasing information on ICO’s and cryptocurrency activity.
Major Chinese cryptocurrency platforms, including Jinse Caijing, Shenlian Caijing, and Huobi News have been banned from posting on WeChat, however their websites and apps are still running. The purpose of these companies utilizing the app is due to access it gives them to reach over one billion users and targeting those with an interest in blockchain and cryptocurrency. The companies would generate revenue by having sponsored post concerning ICO projects be released.
Back in May 2018, WeChat ended up blocking a third-party blockchain app which allowed users to create contract agreements as well as using a personal social media ID on a blockchain to authentic the contract.
While China has taken a harsh stance against cryptocurrency and ICOs, the country has been delving into blockchain technology and its various usage across multiple sectors.
Despite the blanket ban, ICOs continue find investors within China due to various crypto exchanges facilitating the activity illegally. However, the Chinese Central Bank feels that crypto and ICO ban has had a successful impact due to recent reports that the country’s fiat currency, Chinese Yuan, makes up less that 1% of all crypto trades.
Even though the country is cracking down on the fledgling sector, it has embraced blockchains other capabilities, seeing such activities as Zheshang Bank, one of the largest commercial banks of China, reported that it has completed a blockchain-powered issuance of securities worth $66 million.