The major e-commerce search engine and tech companies in China like Alibaba, Baidu, Tencent have closed their apps and chat rooms circulating Cryptocurrencies related information by following the Chinese government’s restrictions on digital money, mostly cryptocurrencies related news. China’s renowned search engine player, Baidu has already closed its renowned chat room like Post Bar Services, Digital Currency Bar, Virtual Currency Bar that were used to exchange cryptocurrency related discussion actively. With the strictest policies in place, China is expected to shut down more than 120 cryptocurrency exchanges transacting offshore.
As per the official source from the two renowned companies, Alibaba and Tencent said that they will close all those applications pertaining to virtual money run on their mobile payment services. With this, Tencent commented in its official statement that it will restrict cryptocurrency trading on its most renowned social app, WeChat while incorporating certain measures like real-time monitoring of daily transactions with blocking suspicious transactions. Besides this, the e-commerce major, Alibaba led Ant Financial supported the Government’s policy saying that it will restrict all those accounts on Alipay, an internet payment platform when they are caught executing cryptocurrency trades. However, both the companies, Tencent and Alibaba were not able to explain how they overlook cryptocurrency trading on their platform and apps. China started to restrict cryptocurrency trading in September last year by banning on domestic exchanges and ICOs.
The Chine government caused Chinese exchange operators and Initial Coin Offerings to execute their projects in more friendlier jurisdictions like Singapore. However, there are numerous players and projects are still luring Chines customers through online services like Telegram and WeChat. Certain Censors have already closed various cryptocurrency led news accounts (owned by media start-ups that raised numerous amount of dollars through venture capitalist) prevalent on WeChat
Beijing’s Central Chaoyang District recently issued a notice restricting hotels, shopping malls, office buildings, hoardings that prompted cryptocurrencies by hosting events. Additionally, Authorities will restrict access to 124 websites executed by offshore cryptocurrency exchanges in the country that offer trading services to the citizens in China.
Besides this, top five Chinese regulators naming Central bank and the Ministry of Public Security issues warning against all those illegal and unethical activities organized under the name of Blockchain and Virtual Currency.
The citizens in China were notified officially against all those trading activities involving cryptocurrency, as well as certain online chat services, offshore exchanges and investment tools promising high returns with low risk however promoted by internet celebrities. The authority explained the citizens in China saying that such kind of activities is not financial innovation but Ponzi schemes that lure the people and take away their money.
As the saying goes, the higher the risk, higher the return. If anything provides you with the higher return at the cost of low risk involved, one has to be very cautious to entertain or trade with such schemes or projects. Let’s us not forget that only those activities executed ethically will provide you with the long-term returns!!!