Crypto Events Banned In Beijing’s Chaoyang District

News, Regulation | August 23, 2018 By:

The central district of Chaoyang in China’s capital Beijing has banned shopping malls, hotels, restaurants, and office buildings in the area from hosting events that promote cryptocurrencies.

Chaoyang is home to the majority of Beijing’s many foreign embassies, the well-known Sanlitun bar street, as well as Beijing’s growing central business district. According to Chaoyang’s official website, the district “is home to more than 60 percent of the foreign business agencies in Beijing, over 3,000 foreign companies, 167 international news agencies, and two-thirds of the 158 of the global top 500 transnational companies that have invested in Beijing.”

In a notice dated August 17, Chaoyang district’s Financial Risk Prevention and Control Group ordered commercial properties to stop providing venues for activities relating to “cryptocurrency talks and promotion.” The notice was leaked online earlier this week.

“We now order every shopping mall, restaurant, hotel and official building not to provide venues for any events that promotes or talks about cryptocurrency, and must report to the authority if such activities were found,” the notice states.

A staffer with Chaoyang’s financial authority confirmed the notice and said that it was issued after an overseas digital currency exchange held an event in the area last week. The staffer added that the notice is restricted to the district in question, but did not give further details.

Dovey Wan, managing director at venture capital firm Danhua Capital (DHVC), believes that the action is an extension of the crypto trading ban that the Chinese government first implemented in September 2017.

“Chaoyang is a very symbolic district, what’s considered as the center of the core power,” said Wan. “Also the propagation of narratives in regulatory environment does not need an official national wide documents in China, this already sets the tone.”

Despite recent initiatives by the Chinese government to adopt blockchain in the real economy, the government has made it clear that it does not want retail investors to get involved in cryptocurrencies because of concerns over financial stability.

Earlier this week, social media giant WeChat blocked crypto-focused online media outlets on its platform, citing regulations enacted earlier this month by the Cyberspace Administration of China, which demand content providers within chat apps comply with “national interests” and “public orders.”