Alibaba, China’s largest internet company, announced that it would no longer sell gear used to mine digital currency.
Alibaba will now punish the vendor for violating the rule and intentionally distorting facts. In addition, if the infringement is repeated, the platform account may be restricted, with the account being blocked if the breach is severe.
These limits, according to Alibaba, are directly connected to the Chinese authorities’ tightening of regulatory policies in respect to mining and digital assets. As a result, the selling of cryptocurrency-related equipment and software, as well as instructional materials connected to this sort of activity, was strictly prohibited.
Previously, the Bank of China’s Center issued a warning, stressing that digital currency is not legal cash and that any operations using cryptocurrencies are illegal and severely banned. According to the notice, any virtual currency exchange service supplied to Chinese nationals via the Internet is also deemed illegal financial activity.
On the one hand, Chinese authorities are tightening their grip on digital assets to fight against money laundering and corruption. According to a Chinese probe, many corrupt structures utilized cryptocurrency to disguise revenue and move cash outside of China. On the other hand, authorities are not against digital assets in general, feeling that bitcoin is a potential development.