The Chinese equivalent of Twitter has reportedly blocked a large number of cryptocurrency-related accounts.
Colin Wu, a Twitter reporter @WuBlockchain, stated on June 5 that several KOL cryptocurrency accounts on Weibo have been blocked. Woo refers to this as “the toughest cryptocurrency lockdown in history.”
He also said, “This may be a response to Beijing’s repressive policies.”
This tweet was the first in a thread. Wu went on to say that the blocked accounts include the accounts of “China’s most famous DeFi executives” and “many famous traders.”
Weibo or Sina Weibo is a Chinese microblogging site and one of the largest social networks in the country. In March 2021, it had an average of 230 million daily active users.
Since the publication of his first conversation, Wu has explained in more detail the suspensions in another series of tweets…
“Social media and Chinese media are managed by the Propaganda Department. Regarding the suppression of bitcoin transactions, the official media are collectively attacking. Thus, the current ban on social media accounts and cryptocurrency-related content continues.
“However, the Central Bank’s crackdown on trade, the Security Department’s anti-money laundering measures and the energy bureau’s anti-mining measures have yet to be published.
“It is currently impossible to predict whether these agencies will introduce policies of repression and intensity, as their discussions are internal and private.”
China’s position has implications
As Wu suggests, the move could be the last that China has taken against the crypto space in recent weeks. On May 18, the country drastically changed its attitude towards cryptocurrencies, instead opting to ban Chinese financial institutions from participating in crypto services.
Many subsequently viewed the ban as one of the potential root causes of the cryptocurrency price collapse on May 19.
The country has also paid attention to cryptocurrency mining amid repression. As reported on May 22, China accounts for 65% of the bitcoin hashrate. On May 24, several crypto mining pools such as BTC.TOP and HashCow suspended operations in China.
However, many believe that the decision to stop mining will actually prove beneficial to the crypto space in the long run. The cryptocurrency mining process has been criticized for its impact on the environment. Thus, a ban on standard mining methods opens the door to green alternatives.
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