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China hardens policy against cryptocurrencies – Binance goes for The Block

  • Binance CEO, Chanpeng Zhao, announced that he will sue “The Block” for alleged slanderous news and reputational damages.
  • Shanghai Central Bank will start implementing stronger measures to regulate crypto exchange activities.

Recently, CNF reported the suspension of Tron and Binance accounts from the Chinese social network, Weibo. In less than a week, news from the Asian giant continues. Initially, the crypto news portal “The Block” reported an alleged hardening of China’s policies towards crypto exchanges. As a result, offices of the crypto exchange, Binance, would have been raided.

Binance denied the information. Then, it announced a sue against The Block for giving false information, damage to reputation and for the negative repercussions it could have on the crypto market.

Binance sues The Block for fake news

Through his usual means of communication, Twitter, Binance CEO Changpeng Zhao released more information about the lawsuit against The Block. In principle, everything seems to be related to the news that the news portal gave a few days ago, about a supposed raid that would have taken place at Binance’s offices in Shanghai.

Immediately after publication, Zhao stated that such an event would not have occurred. This is because, according to Zhao, Binance is a decentralized entity that does not believe in offices. Binance employees would operate remotely.

However, The Block’s news director, Frank Chaparro, defended the news published on this website. Chaparro claims to have testimonies, sources and material that would support The Block’s position. Immediately, Binance’s CEO proceeded to make the announcement of the lawsuit by answering a comment about the news.

In the community, there is talk of how this kind of news, if confirmed to be false, could have had a negative effect on the performance of the crypto market. In addition, these news could be the cause for some to consider the crypto industry as unreliable, directly affecting the prices of Bitcoin et al, and squeezes out new investors.

China tightens its policy and announces new regulatory measures

On the other hand, the China regulatory policies and measures towards cryptocurrencies exchanges seem to be intensifying. This is what would have provoked the alleged raid on Binance’s offices in the first place.

The Central Bank of China will implement stricter supervision mechanisms for crypto exchanges. Such measures may include operating bans, interviews and inspections. According to the Chinese banking institution, exchanges are vulnerable platforms to risks, attacks, speculation and even fraud. The intention of the measures, they declared, is to protect users.

It is necessary to consider that China is only a short time away from launching its digital coin. The hardening of its policy could be related to this fact. The crypto community’s perception of the new Chinese laws against cryptocurrencies has also changed. It has gone from a positive response to the feeling that the Asian giant is much more interested in blockchain technology.

Both reactions seem to have influenced the sentiment of the crypto market, causing an important impulse when they were made and now a depreciation in prices. At least, that is what is suspected. We will keep an eye on the development of the facts.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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