News

Crypto and ICO Services Now Banned on TaoBao

0 Comments

TaoBao has banned all cryptocurrencies and cryptocurrency related services on its platform. Starting April 17th services as varied as offering cryptocurrency mining tutorials to writing whitepapers will not be allowed. According to the site, the move was taken in line with the Chinese government stance on cryptocurrencies.

TaoBao cites the need for the company to comply with rules set by tghe China Banking Regulatory Commission and other regulatory agencies.

TaoBao

“In order to standardize the management of Taobao’s online shopping platform, create a safe and secure online shopping environment for consumers, and enhance consumer’s confidence and experience, Taobao will follow the relevant laws and regulations governing the sale of goods,” a rough translation of a notice posted on its website says.

“Such digital currency and similar digital products are prone to user speculation and irregular financing risks, and any organization must not provide services such as transactions, exchange, pricing, mediation, and payment,” the new policy now states referring to cryptocurrencies and related services.

No More Cryptokitties

Other services which will be prohibited starting tomorrow include smart contract deployment services, business planning, mediation, marketing and ICO consultancy. Virtual assets such as Cryptokitties will be banned when the new change of policy comes into the place.

“Products with the same technical properties and generating mechanisms as digital currency, such as digital pets generated based on blockchain technology,” the policy says.

TaoBao is a subsidiary of e-commerce giant Alibaba. It is one of the most visited sites worldwide with users mainly drawn from China, Hong Kong and Macau. Initial coin offerings or ICOs were banned in China last year. Cryptocurrencies were banned altogether in early 2018.

Except mining, all blockchain related services are banned in the country. Even then, the government plans to gradually phase out cryptocurrency mining. Some miners have already starting moving out.

Penalties

12 points will be deducted for serious violations and 48 points for severe violations according to the new changes.

Violators of the new rules will be penalized when the policy comes into effect. It will be interesting how the site will identify those intent on going round the rules by deceptively changing spellings.

TaoBao

Facebook banned cryptocurrency related advertisements earlier in the year but it is still struggling with deliberately misspelled ads. Internet giant Google has also banned cryptocurrency advertisements in a policy that will be effected in June. The company cited the need to protect consumers from deceptive advertisements as reason for its action .

Despite the harsh stance, China has the highest number of blockchain patents filed to date. The government is even throwing its weight behind blockchain start ups with a $1 Billion Blockchain fund.

Most cryptocurrency exchanges that previously offered services are now located in the semi-autonomous Hong Kong. Major ones like Binance and Bitfinex are scouting for new homes as their prospects appear dim within the country.

Leave a Reply

avatar
  Subscribe  
Notify of
close-link

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.