Alibaba to ban sale of Bitcoin miners

From 8 October 2021, Alibaba, the Chinese e-commerce giant, will prohibit the sale on its platform of equipment used to mine Bitcoin and other cryptocurrencies.

In its decision, the company cited regulator and supervisory authorities’ efforts in China to “prevent risks related to ICO, and the relevant laws and regulations.”

“Taking into account the instability of laws and regulations concerning virtual currencies and related products across various international markets, Alibaba will ban the sale of miners in addition to the ban on offering the digital assets themselves, such as Bitcoin, Litecoin, BeaoCoin, QuarkCoin and Ethereum,” the exchange said.

According to the notice, the ban covers, but is not limited to:

• hardware and software for mining virtual currencies, such as Bitcoin miners;
• tutorials, strategies and software for acquiring cryptocurrencies. For example, mining guides.

Starting 8 October, the platform will remove in the Consumer Electronics section two subcategories: blockchain miners and accessories for them.

Alibaba warned users that attempts to bypass the ban may be met with penalties, including fines and account closures.

Earlier on 24 September, the People’s Bank of China reminded the market of its negative stance toward private digital assets. The regulator says they threaten the financial system with rapid growth.

In May, authorities said they were taking measures regarding mining and trading of cryptocurrencies.

In June, Chinese banks were barred from participating in transactions related to digital assets.

MicroStrategy’s CEO Michael Saylor called the crackdown on mining in China a “trillion-dollar mistake,” while Galaxy Digital founder Mike Novogratz called it a “big plus” for the industry.

Circle chief executive Jeremy Allaire urged the United States and Western countries not to follow China’s lead in cryptocurrency regulation.