Taobao joins the fray, and bans Cryptocurrencies and ICO related products

Alibaba's Taobao, the Chinese marketplace platform formally bans ICO and blockchain products

Marcus Zallman
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Alibaba’s online marketplace company, Taobao has recently announced that any company using their software, which is hosted on the platform, will no longer be able to promote, sell any crypto or ICO related products.

Citing the ban:

“products with the same technical properties and generating mechanisms as digital currency, such as digital pets generated based on blockchain technology.”

These new rules have been added onto the existing restrictions that the company had previously on crypto and ICO services.

Taoboa launched its services in 2003 as a e-commerce platform which would allow small businesses and individuals to set up an e-commerce store. The platform is very popular in Hong Kong, Macau and Taiwan and has become a focal point for ICO related services, such as white paper writing services. Taoboa, which is a division of Alibaba, is considered to be the 6th largest internet company, and it now follows Facebook, Google, Mailchimp and Twitter’s ban of the promotion of cryptocurrencies.

Citing the recent clampdown of ICOs by the People’s Bank of China (PBOC), in its paper “Effectively Strengthening Virtual Currency Supervision to Firmly Maintain National Currency Issuing Rights,” Taobao now classes the sale of any ‘mining rigs’ or for stores that promote, or offer tutorials in mining cryptocurrencies, white paper production, or CryptoKitties sales as part of this ban, and should stores violate the new regulations then they would be punished.

The new policy will come into effect from the 17th of April, 2018, and Taobao hopes that the additional restrictions would protect its customers from financial risks and potentially illicit activities, as well as to conform to the new regulations set by PBOC.