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Chinese social media giant Weibo reportedly bans crypto-related accounts

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Chinese microblogging service Weibo has blocked at least 20 accounts of cryptocurrency influencers. The total number of subscribers to blocked accounts exceeds 5 million people. The service has accused account holders of violating its guidelines as well as “relevant laws and regulations.

Now, when you try to enter the user’s page, a message appears that such an ID does not exist. At the same time, the accounts had a lot of subscribers, there were active discussions about Bitcoin, cryptocurrency projects and decentralized finance.

Why has Weibo blocked accounts?

It seems that such measures have raised some concerns about the sentiment of the crypto market in China. The social network Weibo itself doesn’t provide any data on the reasons for the blocking. However, it should be noted that the names of most of these accounts, access to which was limited, contained the terms “Bitcoin”, “BTC”, “Blockchain” and “Coin trader”. Cryptocurrency analysts believe that this may be a consequence of Beijing’s repression policies. Recall that as a result of the meeting of the State Council of China, the suppression of trading operations with Bitcoin has become a priority to maintain financial stability.

The government has repeatedly warned about the financial risks of cryptocurrency. Which have recently gained new attention amid volatile Bitcoin prices, which plummeted from a peak of more than $ 60,000 last month to around $ 36,000 last week.

The government is also concerned about achieving its clean energy targets. With the goal of achieving emission reductions by 2030 and becoming carbon neutral by 2060. According to the Cambridge Electricity Consumption Index, Bitcoin requires a lot of energy to be mined due to the way its blockchain works, consuming more electricity than the United Arab Emirates in a year.

We also note that last month, the Chinese authorities promised to end the mining and trading of bitcoins. The country’s regulators have banned cryptocurrency-related financial and payment transactions.

In parallel, the central bank of China is accelerating the testing of its own digital currency.

Unsurprisingly, Weibo is somewhat hostile to the cryptocurrency industry given the country’s negative stance. It is also possible that the country has called on local companies to ban cryptocurrency-related activities.

Bitcoin falls on news of new restrictions in China

The flagship coin fell more than 3% immediately after news of the Weibo suspension began spreading among the Chinese crypto community. It dropped to $ 35,300 on Coinbase Pro, and a little later to $ 34,800. At the time of publication, Bitcoin has partially recovered and is trading at about $ 36,300. Although some analysts also suggested that the downturn linked to another tweet from Musk. It seemed to suggest he was parting ways with Bitcoin.

It is worth noting that this is not the first time Weibo has suspended the accounts of influencers from the cryptocurrency industry. He previously censored accounts belonging to Huobi, OKEx and Binance. The accounts of Tron founder Justin Sun and Binance CEO Changpeng Zhao were also blocked.