What happened?
There are claims that crypto professionals in Hangzhou were summoned by police, who used forensic tools to search their devices. Mirror Tang suggested this activity was informal and possibly part of Hangzhou’s role as a digital finance governance zone. Jack Kong refuted these claims, saying no special actions were being taken against blockchain professionals in the region.
Who does this affect?
The situation mainly affects crypto professionals and companies operating in Hangzhou and potentially other areas of China. It has caused unrest among the Web3 community, with concerns about reputational harm from the claims. Additionally, anyone involved in token issuance, fundraising, and operations might be affected by these alleged investigations.
Why does this matter?
This situation could impact the market by creating uncertainty and fear among investors and crypto companies in China. If these actions signal stricter enforcement, it might lead to decreased investment and participation in the Chinese crypto market. The lack of clear regulatory guidance continues to be a challenge for the industry, affecting both domestic and international players.