On April 10, 2018, Taobao – a subsidiary of Alibaba Group – published an update to its list of prohibited products, broadening its ban on virtual currency products to include derivative goods and services (e.g., digital pets, ICO marketing). Previously, the e-commerce website forbade virtual currency sales, tutorials, mining equipment, and software.
Taobao said that the expanded prohibition list, which takes effect on April 17, 2018, is meant "to standardize the market management order of Taobao's online shopping platform, create a safe and secure online shopping environment for consumers, and increase consumer's confidence in purchase and satisfaction."
Violations of the new rules can result in 12-point deductions per offense. Serious violations may result in 48-point deductions. These "points" appear to be part of a reputation system on Taobao. It seems that point deductions can result in a shop being temporarily excluded from search results or even being removed from the system altogether (depending on the severity of the violations).
Alibaba has sought to distance itself from the cryptocurrency markets in recent weeks. At present, the company is embroiled in a trademark infringement lawsuit against Alibabacoin Foundation, a Dubai-based startup company.