Beijing, Guangzhou Hub Bans Cryptocurrency Events

The Guangzhou Development District, a special economic zone in southern China, has banned all promotional events related to cryptocurrency as the country’s cryptocurrency crackdown continues. What does this mean for China?

The Guangzhou Development District issued a notice on Friday to forbid cryptocurrency events in the district, the South China Morning Post reported on Wednesday. The ban is a move toward “maintaining the security and stability of the financial system,” an excerpt from the reason behind the ban.

The notice follows a similar ban enforced by authorities in Beijing’s Chaoyang district on August 17. The order warned office buildings, hotels and shopping malls in the central district of China’s capital against hosting any events promoting cryptocurrencies.

A public notice from a number of prominent Chinese watchdogs and authorities including the central blasted initial coin offerings (ICOs), a form of fundraising powered by cryptocurrencies that have been outlawed in China and other ‘illegal’ crypto crowdfunding. Operators using terms like “financial innovation” or “blockchain” to solicit investments are actually conducting “fraud, pyramid schemes” the regulators have warned.

Cryptocurrency trading activity in China has already been detered, following investigations into exchanges from early 2017 that eventually led to the shuttering of exchanges within the country.

China’s “great firewall” is also taking measures to block the country’s citizens from accessing the websites of over 120 cryptocurrency exchanges overseas.

Photo by chuttersnap on Unsplash.

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