Alibaba’s Taobao Bans Cryptocurrency

8 May

Taobao, a well-known Chinese e-commerce website and a subsidiary of Alibaba Group, will ban the listing of administrations for cryptographic currency or ICOs. The e-commerce giant created a new strategy to “increase control of derivative services of digital products generated based on blockchain technology”.

The Hangzhou-based business already had set up a restriction on digital currency miners and mining counsels. The update “changed the explicit definition of the scope of virtual currency generation”. This implies any service or product that identifies with a virtual money created on a blockchain. This incorporates the sale of tokens and assets produced through blockchain like those for blockchain utilities and games. The ban likewise includes services like business planning, consultancy, and marketing; as long as it needs to do with cryptos or ICO.

The new rules which Taobao says are “to institutionalize the market administration request of Taobao’s web-based shopping stage” will produce results on April 17th, 2018. The company has followed in the footsteps of Google, Facebook, and Mailchimp who have all declared similar bans as of late. The company based its ban in light of the common laws in China which does not encourage digital currency-related exercises. The updated rule read:

“Taobao will follow the relevant laws and regulations of the State and stipulate the rules governing Taobao’s ban on the sale of goods. The relevant terms of the interpretation are changed.”

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