Alibaba, the Chinese e-commerce giant, has announced that it will no longer allow crypto-mining equipment to be sold on its platform. The sales giant made the announcement yesterday via its official website. The move is a direct result of the recent ban imposed by the Chinese government on cryptocurrency trading and mining. Other institutions and exchanges have also been affected.
Alibaba bans sales of ASIC miners
Alibaba, one of the largest sales companies in China, has announced that it intends to ban the sale of mining companies and the same cryptocurrency on its platform. The company explained that this came as a result of many circulars and decisions taken by the People’s Bank of China, which state the following:
Alibaba.com will ban the sale of virtual currency mining tools as well as ban the sale of virtual currencies such as Bitcoin, Litecoin, BeaoCoin, QuarkCoin and Ethereum.
The company will terminate two of its product categories to enforce this ban – Blockchain Miners and Blockchain Miner Accessories. The ban, set to take effect on October 8, has the potential to affect retail sales across Asia, due to the presence of Aliexpress and Lazada, affiliates that extend Alibaba’s reach across the continent.
Announcement of penalties
To ensure that users comply with the new policy, Alibaba announced a series of measures to penalize the sale of such articles on its platforms. The company stressed that to punish anyone who evades these rules and places cryptocurrency products in other categories, it will remove or delete listed products, deduct points, restrict the use of site functions, and close accounts.
The move by Alibaba comes from the position of the country’s financial authorities, including the People’s Bank of China, which has been developing against cryptocurrencies for many years now. However, the latest crackdown has had more serious repercussions for important companies and exchanges in the industry.
Huobi, one of the leading exchanges in Asia, has not allowed Chinese users to register new accounts on its platform, and has announced that it will close the accounts of existing users in China. Since Alibaba is one of the largest e-commerce sites in the world, it is difficult to predict the imminent effects of the newly implemented measures.
What do you think about Alibaba banning the sale of crypto miners on its platform? Tell us in the comments section below.
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