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Guangzhou tech hub bans cryptocurrency

Guangzhou tech hub bans cryptocurrency

August 31, 2018 6:03 am,

The Guangzhou Development district is a special economic zone in Southern China close to HongKong has banned all cryptocurrency. This development district has issued a notice to forbid cryptocurrency events in the district. The special economic zones were instilled in various districts of China to encourage and foster business with less restrictive laws.

The ban issued was stated to be a step towards moving maintaining stability and security of the financial system. This move has come right after the one by the government authority Beijing’s Chaoyang district which issued the same ban to shopping malls, hotels, restaurants, and official buildings.

Reason for ban?

The main reason for the ban stated by the Development district is the same as Beijing. They want to stabilize the Chinese Yuan and make it a legal currency and increase its position in the market.

The government of Guangzhou province, where the city is located, has completely opposed the ban and the step taken by the government. The provincial government had published a notice ordering municipal and county level governments to speed up the rolling out policies to support blockchain start-ups and also help to accelerate adoption of the applications which help to develop a technology.

On, Friday, a joint public notice from a number of prominent Chinese watchdogs and authorities including the central ICO (Initial Coin Offerings), a radical form of fundraising powered by the cryptocurrency that has been outlawed in China and other illegal forms or events of crowd fundraising. Terms like “financial innovation” or “blockchain” are being used by operators to perform fraudulent activities and solicit investments which the regulators have warned investors against.

This ban has formed an ever intensified crackdown by the Chinese authorities in the domestic cryptocurrency sector. Already, cryptocurrency trading was banned and dented, and always under scrutiny that led to the shuttering of the exchanges within the country. The censorship policies also have put a brake on the crypto rules and regulations along with transactions through private messaging and peer to peer financial platforms. The most popular Chinese payment applications like AliBaba has stopped the users from sending or receiving cryptocurrency. China’s so-called “firewall” has taken great measures to block citizens from accessing websites over 120 websites. Baidu, China’s biggest search portal has banned all crypto related searches.