BUSINESS Websites close 12,000 accounts encouraging illicit virtual currency trading amid crackdown

BUSINESS

Websites close 12,000 accounts encouraging illicit virtual currency trading amid crackdown

Global Times

12:11, August 10, 2022

Cyberspace (Photo: VCG)

Social media platforms such as Weibo and Baidu have closed some 12,000 accounts encouraging users to invest in illegal virtual currency trading this year under the guidance of the Cyberspace Administration of China (CAC), the regulator said on its WeChat account on Tuesday.

In addition, more than 51,000 illegal threads with information such as "making easy money from investing in Bitcoin" were removed from social media platforms in accordance with relevant regulations, the CAC said.

A total of 989 Sina Weibo accounts, Baidu post bar threads, and WeChat accounts were shut down in accordance with the law after they encouraged social media users to invest in so-called virtual currencies, virtual assets and digital assets, under the guise of financial innovation and blockchain.

Also closed were 105 websites specializing in virtual currency marketing, online tutoring on cross-border virtual currency speculation, or virtual currency mining.

Regulators also held talks with 500 industry sites such as ChainNode and vc.cn to tell the sites to remove content that hyped virtual currency trading.

These moves are all parts of a multi-pronged crackdown against illegal virtual currency trading launched by the regulator this year in keeping with relevant laws and regulations, the CAC said, adding that while it's conducting its crackdown, it values tip-offs from social media users.

Along with the rise of virtual currencies, speculation and fraud have become more prominent, and some social media users blindly bought into the hype that investing in virtual currencies could generate high returns, often sustaining serious financial losses, the CAC said in the post on Tuesday.

The CAC said that it will continue its crackdown on illegal financial activities related to virtual currencies and protect people's assets. It reminded the public to take a considered approach to wealth management and refrain from taking part in virtual currency speculation to avoid personal losses.

China has been intensifying efforts to crack down on cryptocurrency trading and mining.

In February, the Supreme People's Court, China's top court, released a revision of the criminal judicial interpretation for illegal fundraising, adding cryptocurrency trading as a new potentially criminal act.

Last year, China moved to ban Bitcoin mining after outlawing cryptocurrency exchanges in 2017.

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