The Chinese government has once again pinned down the blockchain scenario in the mainland by permanently shutting down some of the most prominent blockchain online news media channels operating mainly through WeChat.
Effectively severing a significant blockchain media stream for crypto exchanges and ICO news, the move struck off about eight such media outlets that held substantial domain authority on WeChat. However, these outlets can continue to operate via other channels like the app, website, and social media etc., which are still functional. Despite that, it is quite expected that the move is set to alleviate the mass reach of blockchain startups, especially from the perspective of crowdfunding.
Owned by the Chinese multinational investment colossus ‘Tencent’, WeChat is a popular instant messaging platform with over 800 million active users, which, over the years, has warped into a social entity as well. Since the proliferation of blockchain technology, WeChat has also gained traction as a unique platform for blockchain startups to release ICO information. Apart from directly benefitting early stage blockchain firms, the platform has facilitated venture capital funding for many blockchain news media outlets in the past few years; a classic example of which is ‘Knock Knock’ – a game development platform for building games for Facebook Messenger and WeChat that raised $2 million in seed funding by Raine Ventures.
In an official statement, Tencent clarifies that the banned news mediums have been spreading information about ICOs and crypto trading, which is against the government’s decision to declare crypto trading and ICOs as illegal.
In recent times, the business sector in China has been quite aggressive at building blockchain-based solutions. Zheshang Bank launching its blockchain-based securities and Bank of China joining hands with UnionPay to build a decentralised payment system are some such events that reflect the building quintessence of the blockchain revolution in the region.
On the contrary, the Chinese government’s crypto ban in September 2017 that gave a significant shock to blockchain communities around the world by wiping out billions in a day, makes it quite difficult to guess what is going on between the government and the business sector in the mainland, given that the Chinese tech industry evidently stands among the biggest blockchain adopters across the globe.