The Chinese equivalent of Twitter has reportedly suspended a large number of cryptocurrency-related accounts.
Colin Wu, a journalist operating under the Twitter handle @WuBlockchain, stated on June 5 that several cryptocurrency KOL accounts on Weibo had been blocked. Wu referred to this as “the harshest suspension of crypto in history.”
He also said, “it may be a response to Beijing’s crackdown policy.”
This tweet was the first in a thread. Wu went on to share that the blocked accounts included those of “China’s most famous DeFi leaders” and “many famous traders.”
Weibo, or Sina Weibo, is a Chinese microblogging site, and one of the country’s biggest social media platforms. In March 2021, it recorded 230 million daily active users on average.
Since posting his initial thread, Wu elaborated further on the suspensions in another series of tweets.
“Chinese social media and media are managed by the Propaganda Department. As for cracking down on Bitcoin transactions, the official media are attacking collectively. Therefore, the current ban on social media accounts and content involving cryptocurrency is continuous.
“However, the Central Bank’s crackdown on exchanges, the security department’s crackdown on money laundering, and the energy bureau’s crackdown on mining have not yet been issued.
“It is currently impossible to predict whether these departments will introduce crackdown policies and the intensity, because their discussions are internal and private”
China’s attitude has consequences
As Wu speculates, this move could be the latest China has made against the crypto space in recent weeks. On May 18, the country U-turned on its accepting attitude towards cryptocurrencies, instead deciding to ban Chinese financial institutions from participating in crypto services.
Many have subsequently regarded the ban as one of the potential root causes for the crypto price collapse on May 19.
The country also turned its attention to crypto mining amid its crackdown. China accounted for 65% of the bitcoin hash rate, as reported on May 22. By May 24, several crypto mining pools such as BTC.TOP and HashCow suspended their operations in China.
However, many believe the decision to stop mining will actually prove beneficial to the crypto space in the long run. The crypto mining process has come under fire for its effects on the environment. As such, a prohibition on standard mining practice hopes to open doors for green alternatives.