Chinese e-commerce giant Alibaba Group Holding Limited BABA has announced it will stop selling cryptocurrency mining equipment on its platforms from Oct. 8.
What Happened: Alibaba said it made the decision following the People’s Bank of China’s latest policy circular that bans all cryptocurrency-trading-related activities in the country.
The decision also takes into account the “instability of laws and regulations” on virtual currencies in various international markets, according to Alibaba.
See Also: How To Buy Bitcoin (BTC)
The company will ban sales of hardware and software related to cryptocurrency mining in addition to the prohibition against selling cryptocurrencies such as Bitcoin BTC/USD, Ethereum ETH/USD, Litecoin LTC/USD, QuarkCoin QRK/USD and BeaoCoin.
Why It Matters: Alibaba’s ban comes after the People’s Bank of China reiterated its warning last Friday on virtual assets not being legal tender in the country and banned all crypto transactions.
Chinese authorities had said in May this year that tighter security was needed to protect the financial system and called for a crackdown on Bitcoin mining. The decision resulted in the exit of several cryptocurrency mining firms from the country.
Alibaba operates several platforms in China, including social commerce platform Taobao Marketplace, a third-party online and mobile commerce platform Tmall and digital marketing platform Alimama.
Price Action: Alibaba shares closed 3.5% higher in Monday’s trading at $150.18.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.