Cryptocurrency, News

China Is Going To Crack Down On Major Tech Firms Including Tencent And Alibaba

It is no secret that China likes to be in charge, whether it be in terms of their culture or socio-political issues. Well, it seems that they do not wish for smaller companies to succeed too much either, as Beijing recently came down hard on numerous companies such as Tencent, Alibaba, and Baidu.

This is all part of China’s ongoing campaign to rid its nation of monopolies, and so at the time of this writing, they have managed to crack down on at least 12 different companies in the country, including the ones listed above.

Big trouble for crypto in China as penalties and regulations loom

Nearly all of the aforementioned companies face the risk of extremely strict regulation in addition to hefty fines and severe penalties in the coming weeks. As discussed, China loves to be in charge and so will do everything in its power to ensure that no organization, firm, or company can rise up to challenge their dominance on the economy. To this end, they have been rooting out any and all ‘anti-competitive activities and behavior’ for a while now, and their latest efforts are just a reminder of that fact.

They have thus begun imposing hefty fines and strict regulations to make sure no one can succeed too much in China. In fact, just last year, there was a lot of pressure being put on Alibaba in an attempt to make it function more like a Chinese bank subject to the same rules, regulations as well as capital requirements.

Companies in China see their stocks drop as slow growth expected

For now, it doesn’t seem like there is much that can be done about China and its policies. As of the time of this writing, China has plenty of more rules and regulations to put out and administer in the near future, and as a result of this, growth will be adversely affected.

Still, crypto exchanges need to remain hopeful and persevere through this trying time. They have seen their stocks drop as of late, but that is understandable given the current socio-economic climate in China.

Leave a Reply

Your email address will not be published. Required fields are marked *