China crackdown on cryptocurrency influencers

Sina Weibo, the popular Chinese social media app, has taken action to remove 80 influencer accounts that were promoting cryptocurrency activities on its platform. The removal was carried out in response to official legislation, as the accounts were found to be in violation of various regulations related to telecommunications, finance, banking, online marketing, securities, exchanges, and internet safety. The removed influencer accounts collectively had a total of over 8 million followers.

This is not the first instance of Sina Weibo cracking down on cryptocurrency influencers. In March, the platform had already removed 131 accounts that were involved in both cryptocurrency and stock trading activities. However, the most significant crackdown occurred in August 2022 when the Cyberspace Administration of China (CAC) took action by removing a staggering 12,000 cryptocurrency influencers accounts on Weibo and Baidu, another popular Chinese search engine. All of these accounts were linked to cryptocurrencies, and during the same crackdown, 51,000 promotional posts related to cryptocurrencies were also deleted.

The CAC justified its extensive action by emphasizing the importance of protecting people’s property safety, promoting correct investment and discouraging participation in virtual currency trading hype. Similarly, Weibo has also reaffirmed its commitment to cracking down on illegal securities activities and strictly controlling any violations of laws and regulations.

The crackdown on cryptocurrency activities in China is part of a wider effort to curb capital flight and money laundering, while also protecting the interests of the country’s state-run cryptocurrency initiatives.