The Chinese government published a draft regulation on December 31, stating that no organization or individual is allowed to engage in online marketing for illegal financial activities, including cryptocurrency transactions.
Regulation by the People’s Bank of China, the People’s Bank of China, and other Chinese government agencies stipulates that any organization or individual should not be allowed to provide internet marketing services for illegal financial activities involving “virtual currency transactions.” The draft will be made public by January 31.
China’s Bans in Cryptocurrency
The Chinese government has been taking a tough stance on cryptocurrencies since its crackdown on cryptocurrency mining in May 2021. On September 24, China declared all cryptocurrency transactions illegal. Last December, in a lawsuit involving a dispute over Bitcoin mining equipment in Beijing, the local court ruled that the Bitcoin mining contract was “void”.
Multiple internet marketing scams involving cryptocurrencies have been reported recently in China. On December 24, an internet scam of over 500 victims and over US$22 million was discovered in Sichuan province, which convinced Chinese citizens to invest in cryptocurrencies. After more than a year of investigations and trials, 590 people involved in the case were tried and convicted.