Monday, 24 June 2019

Alibaba's Taobao Bans Blockchain-based Products And Services

Close on the heels of a ban on the sale of cryptocurrency miners and offering virtual currency and mining tutorials, Chinese online shopping website Taobao has now banned all products or services that make use of the Blockchain technology.

Taobao is a subsidiary of Chinese eCommerce Giant Alibaba. Taobao, often known as China's eBay, has updated its list of prohibited goods and services to include blockchain technology-based products.

The policy update made on the Taobao website says, "Digital products and derivative services such as virtual currency generated based on blockchain technology...Products with the same technical properties and generating mechanisms as digital currency, such as digital pets generated based on blockchain technology."

The new rule also prohibits cryptocurrency related services such as ICO consultancy, technology development, business planning, mediation, marketing, agency, etc.

These new rules announced on April 10 will come in to effect from April 17. It bans all merchants on its platform from providing the banned products and services. It also envisages punishments based on a points system for non-adherence of the ban of between 12 and 48 demerit points.

Sign up for our newsletter!
"Such digital currency and similar digital products are prone to user speculation and irregular financing risks, and any organization must not provide services such as transactions, exchange, pricing, mediation, and payment," the policy update said.

Taobao cites its updation of policy to the ban announced by the People's Bank of China on Initial Coin Offerings (ICOs) last September and cryptocurrencies itself earlier this year. The apex bank in China continues to have a tough stance on dealing with cryptocurrencies in China.

Though Taobao has banned all Blockchain related products and services on its website, the central bank continues to be positive on blockchain technology that is underlying bitcoin and other cryptos.

source: RTTnews
Legal disclaimer: The insight, recommendations and analysis presented here are based on corporate filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. They are presented for the purposes of general information only, and all the information belongs to the original publishers. These may contain errors and we make no promises as to the accuracy or usefulness of the information we present. You should not make any investment decision based solely on what you read here.

Creamcoin Marketcap