Taobao has been in existence since 2003 and it provides a platform where individuals and small businesses can set up online stores that provide goods and services to the residents of Hong Kong, Taiwan, and Macau. They have since reviewed their policy statement where they have introduced clauses that ban all ICO and cryptocurrency services. The new rules, among other things, prohibit business proposal writing, technological development, and marketing of ICO and cryptocurrency services.
Taobao has defended itself concerning the ban by citing the Peoples Bank of China’s regulatory measures that prohibited such services being offered in China. Since Taobao stores provide services to the Chinese speaking areas, they must adhere to the top bank’s orders.
According to the policy update, the ban takes effect from 17th of this month. Taobao had earlier prohibited all its stores from dealing in crypto mining devices. The newly updated policy did not lift this ban.
But although the PBoC had banned ICO and crytpocurrency services since September last year, some individuals are finding a way of circumventing this ban. When advertising the banned service on online they are slightly changing the wording. Instead of using the actual descriptive terms they slightly change the wording. For example, instead of writing the word “cryptocurrency” they write it as “C-Currency”, instead of “ICO” they write it as “I.CO”, instead of “crypto” they write it as “crypt0”(instead of ‘O’ they use a Zero ‘0’) This rewording of prohibited services is also being used to evade the ban on Facebook.
Taobao has also sent a warning stating that punishment will be awaiting those who are caught to disrespecting the ban.
As of February this year, Taobao had an active monthly user base of 580 million.
With Taobao following the footsteps of Twitter, Facebook, Google, etc, do you think the ban will be 100% successful considering ways of evading the ban are already available?
Let us know in the comment section below.