The ban of all bitcoin and virtual currency-related advertising from the online portals of China’s largest search engine, Baidu, has thrown the fate of cryptocurrencies into a dicey state in the world’s largest market for bitcoin trading and mining. As China literally controls the bitcoin market, this move is likely to have a multiplier effect on the entire ecosystem. Though the reported reasons behind a blanket cryptocurrency-related advertising ban could still be said to stem from speculation, there is a claim that Baidu’s action was in line with recent efforts by Chinese authorities to combat widespread financial crime. Aside that the People’s Bank of China (PBOC) had revealed plans to launch its own digital currency, it could be recalled that the China Banking Regulatory Commission had warned financial companies not to use the word “bank” loosely in their names. China’s authorities had also pledged to clamp down on online fraud in March. So when the tragic death of Wei Zexi, a college student with cancer who sought treatment from a hospital found through an online advertisement, came to light, it was a difficult situation for Baidu. Zexi stated in a post before his death that Baidu had mislead him to seek treatment from a hospital that had advertised a treatment researched in collaboration with Stanford. Also read: How China’s Plans to Launch Its Own Currency Might Affect Bitcoin This turned out to be untrue but Baidu was heavily criticized by the Chinese public over paid ads. China’s Cyberspace Administration launched an investigation and within just a week had ordered Baidu to “revamp the way it handles advertising results in online searches,” according to the Wall Street Journal . However, according to OKCoin, the impact of Baidu’s move would be small even though China accounts for at least 30% of […]
