Price Paid: Cryptocurrency- based Accounts in WeChat Removed by China, due to Breaching

Price Paid: Cryptocurrency- based Accounts in WeChat Removed by China, due to Breaching
The Siliconreview
22 August, 2018

The Central authorities in China have strictly ordered social media company, WeChat to remove all block-chain based related official accounts. According to a source, the demand for the shutdown came from the internet regulators of the country.

Although China is a hub for major cryptocurrency companies, the authorities took a firm decision to scrap out the accounts that were suspected over publishing and spreading fake news and rumors about Cryptocurrency and ICOs. The accounts violated a few rules under the public information services for instant messaging tools. 

The accounts that were permanently removed from the social –media platform are Golden finance, Huobi news, and Deepchain finance. The world’s third largest cryptocurrency exchange, Huobi holds the banned accounts.

The Chinese government has adopted strict rules towards cryptocurrencies since September last year when the country’s central banks banned all ICOs. The new regulation has forced many top cryptocurrency companies to move their operations outside China. Huobi has shifted its Head Quarters from Hong Kong to Europe. In 2017, the country applied for 225 blockchain patents, almost two and a half times than the US.

Meanwhile, the central government wants to implement a national standard for blockchain technology with several local governments following the lead either by establishing their blockchain venture funds or setting up blockchain industrial parks.

The different government attitude divides the legality of the two closely related sectors in blockchain: “lianquan” as dubbed by insiders, enjoy government provincial policies and investments, and those in cryptocurrency community or “biquan” are operating in a grey market.