this week is taken by the government of China against crypto-related WeChat accounts, blockchain events and Digital Asset exchanges, and has solidified his negative attitude towards crypto-currency trading and Initial Coin Offering (ICO) market.

WeChat ban and PBoC warns of ICOs

On the 22. August, reported Cointelegraph that WeChat, China’s largest Messaging App, which has over 1 billion active users per month, and ban the accounts of crypto-currency investors, users and companies.

at the time, Lanjinger reported, a local news Agency, that the accounts of deep chain, Huobi News, Node-Capital-supported Jinse and CoinDaily were suspended or permanently closed, because she violated their policy of the “transitional provisions on the development of public information services on Instant Messaging Tools “by promoting ICOs and crypto currency trading.

While CoinDaily confirmed that its WeChat channel has been suspended, with more than 100,000 subscribers of WeChat, and Leonhard Weese, President, Bitcoin Association of Hong Kong, told Cointelegraph that many accounts have been temporarily or permanently suspended due to other sensitive topics outside of the cryptographic

“you have been blocked you have been blocked, as they talked about the Impfskandal, not about crypto. We find this counter-intuitive, but to report on such scandals, is much more sensitive than talking about crypto or crypto. I expect that their accounts will be made in a week or a month.”

expert argued that WeChat-ban has nothing to do with crypto

at the end of July, the Chinese medicine industry was involved in a large scandal , after the largest monitoring officer of the Chinese drug industry, had published his results, the two pharmaceutical companies accused, to develop substandard vaccines, and to deceive the local Supervisory authorities.

in Particular, Chang Sheng Biotechnology fake data on the sale of more than a quarter of a million ineffective diphtheria-, pertussis – and Tetanus vaccinations have been published, as Fortune reported.

Weese argued that given the scale of the scandal in China and the global medical sector, it is more likely to spread, except for large crypto-currency accounts, such as CoinDaily, deep chain and Huobi News most of the accounts that were involved from WeChat, misinformation about the scandal.

But confirmed as a WeChat Official to Lanjinger, swore allegiance to the Chinese government for a more stringent approach in the control of ICOs and Token sales, and the Chinese Social-Media platforms will continue to be to the accounts of individuals and companies, which are used for promotion and marketing,, advertising for ICOs on the Chinese market, which has been banned by the end of 2017 by the government.

“[accounts have been permanently locked out, because they] were suspected of the publication of information in relation to ICOs [Initial Coin Offerings], and speculation about the crypto-currency trading,” the official said.

In a statement, the South China Morning Post (SCMP), the Huobi Team rode that the ban on his account, with the restriction of the crypto-currency by the government, but rather by the “width of the action against industrial media” through WeChat.

Facebook Blockchain Initiative to influence China relationship?

In July of 2018 Facebook that was banned in 2008 in China, was awarded the license to operate an office in China. The Social Media group has opened in Hangzhou, a 25-million-Euro subsidiary called Facebook Technology, in order to Finance young Start-ups and technology-related initiatives.

“We are interested in an innovation center in Zhejiang to Chinese developers, innovators and Start-up support to ups,” said Facebook to Verge in a statement.

in view of the rumors that Facebook will introduce its own crypto-currency in the global market, remains unclear, to integrate whether Facebook’s alleged idea of crypto-currencies, or to launch their own Blockchain platform, his current relationship with the Chinese government could affect.

Chinese Social Media platforms like Baidu and WeChat have seen neither in national nor in international crypto-currency Communities rumors about crypto-currencies and Blockchain-related initiatives, possibly to avoid conflicts with local financial authorities.

PBoC warns of ICOs

On the 25. August warned the People’s Bank of China (PBoC), the Central Bank of the country, the ICOs, and stressed that the procurement of funds through symbolic sales in the country was illegal. The PBoC and the local financial authorities added an official announcement that it was difficult to keep track of transactions made through ICOs, and to monitor, even if the Token would have made sales in the domestic market.

“The funding for these illegal activities are mostly Overseas, and Monitoring and tracking are very difficult.”

The PBoC also stressed that while the country has encouraged the development and commercialisation of the Blockchain technology, ICOs may not be as legitimate operations or developments on the Blockchain. The document further States that:

“Such activities are actually based on Blockchain technology, but rather on speculative Blockchain concepts for illegal Fund-raising, pyramid schemes and fraud. The main features are as follows:

the risk of illegal activities, with unregulated overseas markets, and inability to track in ICOs transactions or to monitor. Deceptive, opaque, and hidden Fundraising methods, which are based on celebrities and influencers to create a buzz around investment that attracts investors. Illegal operations such as profit-making pyramid schemes and the creation of Ponzi schemes by being referred to as “financial innovation”.

Sheng song Cheng, an adviser to the PBoC, also confirmed to the state newspaper ce.cn, that the government had decided to strengthen the prohibition of ICOs, and to prohibit public accounts, channels and communication platforms, the information about Token sales spread.

rise of the OTC trade, noted Alipay

In December of last year, while the top of the cryptocurrency market, as the combined rating for all of the digital assets on the market to 744 billionthe Euro, reported China’s national expert Committee for Internet-financial security – a government-backed research group, that the volume increase of the OTC (Bitcoin) market quickly.

“Over-the-Counter-trade is booming. This requires further attention, ” the researchers said.

at this time, said Weese in an interview with the South China Morning Post, the largest Mainstream publication in Hong Kong that Telegram because of the Connections between local tax authorities and the operators of WeChat is the first point of contact for large OTC transactions, but that a small part of the investors, the Chinese Messaging platform. Weese said:

“the Telegram is very popular for large, over-the-counter transactions. While WeChat is used by the less paranoid.”

operators of various crypto-currency exchanges and OTC platforms – including Tidebit confirmed the increase in the activity on the Bitcoin-OTC market and stated that investors could not trade on the Chinese market, have begun to investigate Peer-to-Peer Alternatives.

this week, Alipay has prohibited, the most widely used technology platform in China with a market share of 90 percent and a market valuation of 130 billion Euro is officially over – the-counter trading in the Alipay network and users of the Alipay App will prevented from the transactions of Bitcoin or digital initiate asset purchases.

Red Li, a cryptocurrency researcher and founder of the Chinese Cryptocurrency Community 8BTC, revealed that Alipay has begun the process of closing of accounts in the OTC Bitcoin trading, most likely due to the demand of the government to banks and financial networks, which States that all payment channels are to be set, which could be used to send funds to the crypto-currency trading platforms.

revealed A rough Translation of the Alipay published the Declaration of the intention of the company to ban every account that is suspected to Finance Bitcoin exchanges, to invest in the crypto currency space.

With the ban of OTC cryptocurrency trading by Alipay is the Hong Kong crypto currency exchange market is the only channel, the local investors for the allocation of funds in the cryptocurrency market.

in view of the fact that investors in China to send millions of euros to the accounts of Hong Kong Shell companies to buy real estate with several million dollars on the Hong Kong real estate market, you have the option to invest via digital trading platforms, with local Bank accounts in Hong Kong .

But due to the strict capital controls of the country and the newly launched Initiative of the government, savings and brokerage accounts to find the be used for tax evasion, it could be even more difficult to send money from China to overseas markets.

prohibition of crypto-Events

In this week Binance had to – the world’s largest crypto-currency exchange with daily trading volume – an event in connection with Cryptocurrency to cancel, the on 23. August, was held in Beijing, as the government announced a ban on commercial Blockchain-conferences and Meetups.

The local government of Chaoyang district in Beijing revealed that they have informed Hotels and other large venues in the country that you have no events in connection with crypto currency and the Blockchain as part of its larger Initiative of the leaked maturation against ICOs and distributed Fundraising.

In an Interview with the Wall Street Journal a Binance spokeswoman said that the demolition of the event to be aware of as the stock exchange organizes a lot of events around the world.

“We have so many Meetings around the world, and [they] can be cancelled for any reason.”

The Communist party-run “People’s Daily” reported that the so-called venture capital-backed media in China through the creation of a hype to ICOs a considerable fortune, but it is not sure whether the publications can continue to promote ICOs in the long run. The publication could lead investors to believe that local authorities targets in the coming months on the independent media, the ICOs apply.

“This ‘media’ have made in the speculative waves of the crypto-currencies have huge assets, but due to their nature, it is doubtful how long your barbaric growth.”

In the past two months has provided the Chinese government the majority of its resources for the strengthening of the crypto-currency trading, and of the ICO market.

in the face of WeChat, Alipay and other platforms, practiced censorship and Beijing’s ban of crypto events, it is likely that the Blockchain technology and the development of the crypto currency will decrease, which is ironic, since China has issued in this year, more than 2.5 billion euros for the financing of Blockchain projects.

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