Taobao bans all cryptocurrency related products

26/04/2018

Alibaba e-commerce site Taobao bans services related to initial coin offerings; Alibaba bans mention of crypto from its website

 

According to a press release issued April 10, Taobao has placed a formal ban on cryptocurrency-related products. The site has banned any store from providing services related to initial coin offerings (ICOs), including technological development, marketing, and business proposal writing.

The rules go into effect April 17 and extend the platforms self-regulatory scope from a previous ban on the sale of individual currencies to any service or product that derives from blockchain technology. The restriction on selling cryptocurrency mining devices and tutorials remains unchanged.

Last September, the People’s Bank of China put its foot down regarding cryptocurrencies. Since then, Taobao has extended the regulation to its own platform.

PBOC has plans for widespread crypto reforms in 2018. Central bank Vice Governor Fan Yifei said “rectification of all types of virtual currencies will be carried out. ” At the same time, the central bank will prioritize and expand upon research towards its own state-backed cryptocurrency: the so-called digital renminbi.

 

The People’s Bank of China has plans for cryptocurrency reform in 2018

 

“First, we will intensify reforms and innovations to promote the central bank’s digital currency research and development; Second, the bank must strengthen supervision and rectify all types of virtual currencies,” he said.

It’s interesting to note that services related to ICOs have remained active among individual stores on Taobao after the PBoC ban last year, some of which knowingly helped ICO projects draw up white papers with fake information.

Currently searching by the term “white paper” in Chinese characters could still lead to stores that offer white paper copywriting services for blockchain and ICO fundraising activities. However, the term used by these stores has been slightly disguised and is rephrased as “I.CO.”

Taobao’s new ruling also makes it the latest internet platform to withdraw from offering a stage to ICOs and blockchain related projects, following recent bans on cryptocurrency-related ads by social media giants such as Google, Facebook, and Twitter.

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