Despite the crackdown, some Chinese websites continue to promote cryptocurrency.
Because of the implications for the domestic industry, China’s cryptocurrency crackdown made headlines at the end of September. However, it was not the first time the government used one. Although it appeared to be harsher than the previous ones, Bitcoin (BTC) only experienced brief bearish pressure as a result, but it later managed to make a strong comeback in terms of price action.
That was the case when BTC’s price was hovering around $50,000, and despite a sell-off at the end of that month, the world’s largest cryptocurrency by market cap quickly recovered to reclaim its all-time highs above $66,000.
Returning to China, the government promised in mid-October to toughen its stance against the domestic sphere by taking punitive measures against crypto trading and companies dealing with the industry, including Bitcoin mining.
Indeed, Beijing directed the Supreme People’s Court, the Supreme People’s Procuratorate, and the Ministry of Public Security to monitor the situation in order to reinforce the announced measures aimed at combating “cryptocurrency trading hype” in China.
However, as of press time, state-owned news outlet Xinhua reported that there are still many websites operating on the Mainland promoting cryptos.
Their justification? Increasing the visibility of blockchain and “metaverse-related” activities. Trading tutorials and promotional banners for in-person meetings or events can be seen on such websites. All of these activities are illegal under the government’s new crackdown.
Many of these websites are heavily promoting functions for traders accessing overseas crypto trading platforms to check their activities and projects, as access from China is restricted, necessitating the use of virtual private networks (VPNs).
In the article, Xinhua suggested that the crackdown be extended to social media and chat platforms, as the government had done in previous crackdowns.
As a result of the new measures, crypto mining companies fled China to establish farms in other crypto-friendly countries to continue operations, dethroning the Asian giant as the global leader in Bitcoin mining.
However, it has been demonstrated that crypto crackdowns in China are insufficient to address the majority of crypto-related activities on the Mainland.