The Chinese social network Weibo has blocked the official account of the Tron cryptocurrency project, accusing it of violating its primary laws. The managing partner of Primitive Ventures Dovey Wan published this on her Twitter account.
👀👀👀 TRON WEIBO ACCOUNT IS OFFICIALLY BANNED
Another case in point don’t over read the Chinese “Blockchain NOT crypto” narrative
TRON’s Weibo account (Chinese Twitter) is now shut down due to “violation of law and regulation” .. pic.twitter.com/IJpN4yJyRA
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) November 15, 2019
At the same time, the popular Chinese platform removed all content and subscribers on Tron’s account.
“The account has been suspended for violation of laws and regulations, as well as the relevant provisions of the Weibo Community Convention,” such a post greets visitors when they enter the project’s profile.
Similarly today, the account of the Binance crypto exchange was also closed down. The reason for banning both Tron and Binance accounts is identical.
However, the launch of Binance p2p trading for Chinese residents through WeChat and Alipay could be a reason behind the decision of the social network. The initiative was supposedly launched in a test for Android users, and in the future will also be implemented for iOS and in a web interface.
On the background of the ban, Bitcoin price dropped to $8500, according to CoinMarketCap data.
However, Justin Sun said he’s already communicating with Weibo, and will do everything to promote the adoption of blockchain technology in China complying with regulations in the country.
Other Crypto News On China
This week, inspections of miners began in China. Miners in the autonomous Chinese province of Inner Mongolia faced inspections initiated by the state regulator.
Previously, Dovey Wan noted that the designated province, along with Xinjiang, is among the leaders in terms of aggregated computing power volume. At the same time, the specialist drew attention to the fact that the practice of disguising mining as a legal business is widespread in China.
One thing to pay attention this time – it mentioned not just crypto mining but also “cloud computing, big data, IDC and data center” are included in the effort of “screening”
Crypto mining business usually disguise as above “legit” business in the eyes of Chinese regulator
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) September 14, 2019
The purpose of the inspection is to fight black mining farms. The business of the latter, according to local authorities, is not included in the list of areas related to the “real economy” of the country. Also, organizations that use the right to receive preferential tariffs for electricity and other tax breaks will be subject to verification.
Specialists intend to pay special attention to market participants whose declared activity differs from their actual ones. An example of this group can be companies that are allegedly engaged in the development of big data.
How the initiative will affect legally working crypto miners is not known.
For the first time, disturbing news that a campaign against crypto mining may be launched in Chinese Inner Mongolia appeared in early September. Recall that China is the leader in terms of computing power aimed at supporting the Bitcoin network.
According to Dovey Wan, Inner Mongolia, in turn, occupies a leading position among the provinces of China in terms of mining hardware. Accordingly, if miners coming offline then this may negatively affect the bitcoin hash rate.
Note that Chinese authorities refused to prosecute miners in the country. Besides, the head of PRC officially announced his intention to use blockchain to solve some problems in the country. Subsequently, a cryptography law was established in China and a regulatory authority was initiated to certify fintech products.