The Chinese government aims to block all websites related to cryptocurrency trading and Initial Coin Offerings (ICOs) within the country . The Great Firewall of China prevents anyone in the country from reaching foreign exchange sites.
China to restrict crypto and ICOs related websites
As stated above, the Chinese government has, reportedly, removed ads relating to Bitcoin and other virtual currencies from search engines and social media in the country.
Apparently, cryptocurrency-related advertisements have stopped showing on Baidu, China’s biggest search engine, and social media platform Weibo. It is almost a similar incidence to Facebook, which said it was banning cryptocurrency-related ads from Facebook.
China is known for blocking foreign websites with the firewall.
This will prevent financial risk according to local media. On Sunday, the People’s Bank of China-affiliated Financial News said risks were still present fuels by the illegal issuance, fraud and pyramid selling. Therefore, it said that overseas transactions and regulatory evasion have resumed.
The local media says that the recent effort by the government to shut down domestic exchanges did not bear fruits fully.
“ICOs and virtual currency trading did not completely withdraw from China following the official ban … after the closure of the domestic virtual currency exchanges. Many people turned to overseas platforms to continue participating in virtual currency transactions.”
The effort to close down exchanges and ICOs was partly because of the risks customers were exposed. For instance, one incidence involved angry investors who forcibly took Jiang Jie, a founder of an ICO project ATS. This was after the coin value dropped in price from 0.66 yuan to 0.13 yuan after the ICO and listing on an exchange in January.
Most people use Virtual Private Networks to trade cryptocurrencies according to a Tokyo-based Bitcoin trader. However, he said the current move might make it harder for people to circumvent the ban in the country.