Alibaba to Avoid Sales of Cryptocurrency Miners amid Crackdown from Chinese Regulators
It was the month of May 2021, when Chinese regulators started carrying out their crackdown on cryptocurrency mining firms. Since then, the cryptocurrency mining sector in China has been going through a really tough time.
The Chinese regulators even issued orders for major and minor firms in the country not to interact with cryptocurrency-related firms at all. According to the Chinese regulators, any firm interacting or providing services to cryptocurrency firms would be deal with regulatory actions.
Such orders from the regulatory authorities in China have even made Alibaba be very cautious and mindful about dealing with cryptocurrency firms. This is the reason why Alibaba has decided that it will not get involved in cryptocurrency-related services.
The e-commerce giant has been compelled by the Chinese regulators not to get involved in cryptocurrency-related services until the situation changes. Following the pressure from the Chinese regulators, Alibaba has announced that it will cease the sales for cryptocurrency miners.
Alibaba has also announced that it will even proceed with discontinuing the category that is present on its e-commerce platform. The particular category would allow the users to gain access to cryptocurrency miners and other hardware used for mining operations.
The announcement in regards to the prohibition of sales for cryptocurrency mining hardware was made by Alibaba on Monday, September 27, 2021. Alibaba has announced that it will cease offering hardware for cryptocurrency mining from the 8th of October, 2021.
Apart from banning sales for cryptocurrency mining hardware, Alibaba has also announced that it will proceed to ban trading services for cryptocurrencies. The firm has announced that it will ban the selling and purchasing of cryptocurrencies through its platform.
At present, Alibaba users were able to buy and sell cryptocurrencies such as Litecoin (LTC), Ether (ETH), and Bitcoin (BTC). Following the ban, this access will be revoked from the users until the cryptocurrency industry is unbanned in China by the regulators.
When it comes to ceasing the provision of cryptocurrency services, Alibaba is taking no risks as to what it needs to offer and what not. The e-commerce giant has even proceeded with banning other services related to cryptocurrencies. These services include software, strategies, guides, and tutorials related to cryptocurrency mining.
Alibaba has also announced that after October 15, 2021, if any merchant or person is found posting ads for crypto tools or hardware would be subject to fines and penalties.
This way, Alibaba is making sure that it does not end up facing yet another major fine from the Chinese regulators. Alibaba itself incurred a fine worth over $2 billion for breaching the antitrust policy. Since the start of 2021, Alibaba and many other tech giants from China are under the Chinese regulatory authorities’ microscope. This is the reason why e-commerce is trying to stay out of regulatory authorities’ sight.