Analysts and a financial regulator have called for stronger measures to link illegal cryptocurrency projects in China more explicitly with the nation’s criminal law.
Last month, the Chinese government intensified its crackdown on Bitcoin mining and trading. This move was part of a broader campaign against cryptocurrencies following a ban on crypto-related financial and payment services by three major industry bodies.
Over the weekend, numerous popular crypto-related Weibo accounts were blocked. The platform cited violations of laws and regulations as the reason for the suspension.
A prominent Weibo Bitcoin commentator, known as ‘Woman Dr. Bitcoin mini,’ said, ‘This is a watershed moment for crypto key opinion leaders,’ after her primary account was also blocked on Saturday.
China Tightens Crypto Regulations: From Judicial Interpretations to Media Crackdowns
Winston Ma, an adjunct professor at NYU Law School, commented, “The government is making it clear that no Chinese counterpart to Elon Musk can exist in the Chinese crypto market.” Ma, author of “The Digital War,” expects China’s supreme court to issue soon a judicial interpretation. That may equate crypto mining and trading with criminal activities under Chinese law.
A financial regulator echoed this sentiment. It suggested that such a judicial move would clarify legal ambiguities and formally classify bitcoin trading activities as illegal. Up to now, all regulations against cryptocurrencies in China have been administrative.
The increased focus on crypto trading also coincides with enhanced media reporting against it. State-run Xinhua News Agency and broadcaster CCTV have highlighted various crypto-related scams. They showed their use in illicit activities like black market trade and money laundering.
This heightened crackdown is happening as China’s central bank accelerates testing its digital currency. This indicated a strategic shift towards more regulated digital finance solutions.
