In the latest crackdown on Cryptocurrencies, multiple leading crypto accounts on Weibo have been shut down with the reason "this account violates laws and rules". Weibo is a microblogging social media site similar to Twitter but under complete legal authority of the Chinese government.
Recently, China has been taking steps towards cracking down on cryptocurrencies, first targeting business use, then trading, then mining and now high-level crypto influencers. This has caused large drops across the crypto markets and the beginning of an exodus for Chinese bitcoin miners. Rumors abound that further action will be taken soon in Chinese courts, possibly linking crypto activities directly with Chinese law. This shutdown on Weibo appears to be a pre-emptive strike on that front.
Woman Dr. bitcoin mini, a key opinion leader (KOL) on Weibo has declared "It’s a Judgment Day for crypto KOL" as her account was also shut down. Another user posting under a new account call Professor Hash seems to be accepting of it, saying "The account I’ve been using for years is suddenly gone, but I’m OK with it. The day was going to come sooner or later.” It's unknown at this time if any further action is being taken against account holders directly, or if there's any action being taken to prevent recreation of accounts. At the time of publication Weibo's media relations officer has declined to comment.
The response to this latest move on bitcoin prices seems to be somewhat limited with the price of BTC dropping from a peak of $36,800 on Sunday to $36,150 today and the price of BCH barely moving from $669 on Sunday to $663 today, a tiny fraction of recent price moves. Jonathan Cheesman of crypto derivatives exchange FTX has pointed to a floor of $33,400 saying "The key level for the bulls to hold is $33,400 as it keeps the pattern of higher lows intact".
The moves from China to shut down bitcoin is arguably the greatest stress test that cryptocurrencies can be given. Should they survive a complete shutdown in China (and all signs point to clear survival of crypto) then arguments around the risk of crypto being completely destroyed should be rendered moot.
