China’s ban on cryptocurrency promotional events now extends beyond the capital to Guangzhou – SCMP
What happened: Guangzhou’s Development District has banned events promoting cryptocurrencies to continue “maintaining the security and stability of the financial system.” This is the first ban of its kind outside the country’s capital, where similar events are prohibited following a crackdown in the city’s Chaoyang District earlier this month.
Why it’s important: The move is the latest in a widening clampdown on cryptocurrencies that began in September last year with the ban on ICOs and exchanges. The government recently reiterated that fundraising through cryptocurrencies lures investors through the idea of “financial innovation, but are just Ponzi schemes.” China’s big tech companies are rushing to remain compliant after regulators have begun shutting down online media relating to crypto. Baidu recently shuttered a slew of related online forums and Tencent and Alibaba are restricting virtual currency transactions made through Alipay and WeChat Pay.