China banning different crypto related activities has been springing up in the news quite often, over the last few months. As it happens, China’s inhibitory stance against crypto continues to show up in the news, even as the year is about to end.
Despite crypto enthusiasts maintaining an optimistic narrative, such headwinds do directly or indirectly affect the crypto market.
No TikTok, no videos for “false and harmful content”
Chinese officials announced a prohibition on content that induces participation in cryptocurrency mining and trading in short videos. The official blog read as:
“In order for China to improve the quality of short video content, curb the spread of crypto false and harmful content, create clear cyberspace, these rules are formulated following relevant national laws and regulations, the “Internet Audiovisual Program Service Management Regulations” and the “General Rules for the Review of Online Audiovisual Program Content.”
Chinese officials announced that any content that induces participation in cryptocurrency mining and trading is prohibited in short videos. The world's largest unlisted company is China's Bytedance, and tiktok is the world's largest short video platform. https://t.co/WEHrEfRlsC
— Wu Blockchain (@WuBlockchain) December 16, 2021
As observed in the tweet above, ‘world’s largest unlisted company in China is Bytedance, and TikTok is the world’s largest short video platform.’ Needless to say, crypto content creators on this video platform will find it difficult to continue operating.
Here are some stats that can put this in a better context. TikTok was the most downloaded app globally, with 89 million new users just in the US. Here 60% are between the ages of 16-24. 26% are between the ages 25-44. Next, consider the crypto traction on an age basis. Most crypto-users are aged between 18-25 and 26-40.
.. And it continues
In another recent development, it has come to light that the Chaoyang District People’s Court deemed Bitcoin ‘mining contracts’ as ‘invalid,’ the South China Morning Post reported. Further, the local government has also been asked to shut down remaining farms. As per the report, this is just another development that points to Chinese government’s intention, rather lack thereof, of ‘recognizing and protecting cryptocurrency-related interests.’
Resemblance is uncanny
The timing of such news is indeed an interesting. As crypto took off in India with millions of users signing up with exchanges, many companies naturally felt the need to advertise their services to draw in more users. However, this strategy led to backlash from lawmakers.
Indian regulators are still studying the possible implications of not just ads but the crypto ecosystem as a whole.