China Bans Internet Marketing for Cryptocurrencies

China’s cryptocurrency ban shook the crypto market in 2021. Miners had to either quit or move equipment, and Bitcoin’s price dropped as a consequence. As if a complete crypto ban wasn’t enough, China proceeded to ban all internet marketing related to crypto projects and services. At the same time, the country is hoping to launch a central bank-controlled digital currency.

Crypto Ban to Apply to Internet Marketing

The Chinese government pushed a cryptocurrency ban on September 24, 2021, stating that all cryptocurrency transactions in the country are illegal. This included cryptocurrency mining as well. After this, China is looking into prohibiting all marketing efforts related to forbidden digital assets.

On December 31, 2021, the Chinese government published a draft regulation where it stated that no organization or individual is allowed to offer internet marketing services for illegal financial activities, including crypto transactions.

This regulation was drafted by China’s central bank and other government institutions. The draft will be reviewed by public opinion until January 31, 2022.

In addition, there have been multiple cryptocurrency scams in China in the last few months. For example, a cross-border internet scam was reported in Sichuan province in December. This scam involved over 500 victims. 

Scammers from Cambodia and the Philippines scammed Chinese citizens for more than $22 million using cryptocurrencies.

A total of 590 people were prosecuted and sentenced.