China's ban on cryptocurrency promotional events now extends beyond the capital to Guangzhou

Guangzhou’s special economic zone in southern China has banned events promoting cryptocurrencies as the crackdown on digital money extends beyond the country’s capital of Beijing.

The Guangzhou Development District, which was established in the 1980s as one of China’s first special economic zones, issued a notice on August 24 that banned the hosting of events promoting cryptocurrencies. It cited “maintaining the security and stability of the financial system” as part of the reason.

The notice was first reported by Chinese media the National Business Daily and confirmed with local authorities by the South China Morning Post. It follows a similar ban ordered on August 17 by Beijing’s central Chaoyang District.

The moves – both restricted to the districts in question – are the latest examples of China’s intensifying crackdown on cryptocurrencies, which began last September with bans on crypto exchanges and initial coin offerings. ICOs are unregulated crowd funding methods involving cryptocurrencies. Despite central government initiatives on adopting blockchain, the underlying technology behind these virtual currencies, Beijing has made it clear it does not want retail investors putting their money into cryptocurrencies amid fears of financial chaos.

The government crackdown prompted Chinese crypto exchange operators and ICO projects to migrate to friendlier jurisdictions such as Singapore, though many still focus on attracting mainland Chinese investors through online chat groups or promotional events.