Alibaba Group Holding Limited has announced plans to prohibit members from advertising and selling crypto mining devices on its website starting from Oct. 8.
The e-commerce giant said the decision was reached “after thorough evaluation” and in order to comply with China’s anti-crypto laws.
“Taking into account the instability of laws and regulations on virtual currencies and relevant products in various international markets, Alibaba.com will prohibit the sale of virtual currency miners”. A statement on the company’s website read.
This announcement doesn’t come as a surprise given that the Chinese government has been ramping up its crackdown on cryptocurrencies for months now, with bans and restrictions coming in waves.
The restrictions also apply to digital tokens including Bitcoin, Ether, Litecoin etc and several other crypto-related products such as e-training materials, strategies, and software.
Alibaba warned merchants on the consequences of trespassing this new rule, stating that penalties will be imposed according to the weight of the violations.
“Members have responsibility for complying with relevant laws and regulations applicable to any country of sale. We will keep track of policy changes in each country and adjust our control policies accordingly,” the statement continued.
This move by Alibaba depicts fear and seems like a precautionary measure designed to minimize the risk of potential future inconvenience or even penalties for continued operations in China.
Do you think the decision to ban sales of crypto miners is a smart move by Alibaba? Let us know in the comment section.
Photo Credit: BBC and Technode