China is Blocking Cryptocurrency Exchanges on Social Media: Local Report

2018/3/7 23:18:33

Regulators in China have begun blocking social media accounts belonging to cryptocurrency exchanges that continue to offer services to customers located on the mainland.


From CCN, Mar 6, 2018:


On Tuesday Beijing-based media outlet Caixin reported that local authorities had forced social messaging platform WeChat to shut down accounts belonging to select cryptocurrency exchanges in a bid to further restrict the ability of mainland residents to trade cryptocurrencies.


As CCN reported, China had forced the closure of domestic cryptocurrency exchanges that offered fiat-to-cryptocurrency trading pairs last September, but some investors told Caixin that they were still able to access the offshore platforms. Other traders moved to over-the-counter (OTC) and peer-to-peer (P2P) platforms, often using social media to find trading partners and execute transactions.


Consequently, authorities began monitoring internet traffic to offshore exchanges, particularly those which had originally been headquartered on the mainland. Officials have reportedly suggested that banks should suspend service to clients found to have engaged in cryptocurrency trading under the pretense of preventing pyramid schemes, money laundering, and other fraudulent activities the government has attributed to cryptoassets.


Though a minor development overall, this move to freeze cryptocurrency exchange accounts indicates that regulators desire to further stifle the domestic cryptocurrency trading industry, which once dominated the global marketplace.


CCN has not been able to confirm which exchange’s WeChat accounts have been closed and which continue to be operational.


[…] ... ocial-media-local-report/


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