While some Chinese companies have purchased BTC and ETH, others, such as the social media giant Weibo, have reportedly halted the accounts of three of the largest crypto exchanges – Binance, Huobi, and OKEx. Weibo has justified its decision by outlining “abnormal practices” and breaching security risks.
Weibo Targets Crypto Exchanges
It may not come as a surprise that a Chinese-based company has a somewhat hostile approach towards the cryptocurrency industry, keeping in mind the country’s negative stance. This narrative received further confirmation today as the local media outlet, the Global Times, reported that the microblogging platform Weibo had blocked the accounts of several digital asset trading venues.
Namely, those are the Malta-based OKEx and Binance, and the Seychelles-based Huobi. According to the coverage, the social media company has outlined two possible reasons for its actions.
More specifically, those are potential safety risks and abnormal practices connected to each account. Nevertheless, Weibo has failed to disclose the precise nature of either of these reasons. A Huobi spokesman said that the exchange is “actively communicating with Weibo” to resolve the matter.
It’s worth noting that this is not the first similar ban for Binance or other crypto-related names. Back in 2019, Weibo temporarily halted access to the exchange’s account, citing that it had violated laws and regulations on the Weibo Community Convention.
Additionally, the social media platform closed Justin Sun’s account later that year without providing any reasoning.
Weibo’s current bans come amid an intriguing time in which another Chinese company showed a significantly more positive approach to the crypto industry. The tech firm Meitu recently purchased 380 BTC and 15,000 ETH.
What Could it Be?
While Weibo has failed to provide more specific information on why it has banned the accounts of some of the largest crypto exchanges, the ever-vocal community has speculated with a few possible reasons.
One of them catches the eye, although it may seem somewhat distant at first glance – the Chinese central bank digital currency.
As previously reported, the People’s Bank of China is arguably the most advanced central bank in terms of launching a CBDC. The world’s most populated nation has released applications, carried numerous trials, and completed thousands of transactions.
Keeping in mind China’s official ban on bitcoin and its desire to maintain control over the financial system, it could be entirely possible that the country has urged local companies to ban crypto-related activities – activities that are in nature designed to bring back control to the people.