China's latest move to ban cryptocurrency shows how tough it will be for the technology to deliver on its backers' vision of disruptive, decentralized change, Axios' Scott Rosenberg reports.

The big picture: Control of the currency is a foundation of sovereignty, and governments don't plan on losing that control even as money inevitably turns digital.

Driving the news: Friday's announcement banning cryptocurrency transactions is only the latest effort by the Chinese government to rein in the technology as it barrels forward with plans for its own official digital currency.

• China has already outlawed bitcoin mining as part of a broader effort to bring the crypto sector to heel.
• Bitcoin mining's high energy cost and carbon emissions also run counter to China's climate goals.

Yes, but: Friday's move suggests China's crypto campaign is less about the environment than about maintaining central control.

Meanwhile, in the U.S., the Biden administration announced Thursday it would nominate Saule Omarova as comptroller of the currency.

• Omarova is a critic of the cryptocurrency movement who has said it is "benefiting mainly the dysfunctional financial system we already have," per Bloomberg.

Between the lines: Crypto enthusiasts see the wide array of new tokens they're introducing not only as currency to trade, but as a new layer of software infrastructure on which they can build a next-generation internet they're calling Web3.

• The "coins" that drive these new software ecosystems aren't only stores of value or speculative investments, but functional components of the contracts and services envisioned for Web3.
• Under these decentralized apps, or "dapps," smart contracts, NFTs and other kinds of software-driven financial instruments and platforms rely on blockchains and cryptocurrency rather than central banks and laws to enforce deals and guarantee payments and property.
• The dream is that, somehow, the unstoppable rise of the technology will displace existing government-backed financial systems, just as the original internet — webs 1 and 2 — displaced other powerful establishments in media, entertainment and commerce.

Yes, but: The early web's vision of decentralization lies in ruins today as a handful of giant companies have simply replaced a previous era's dominant systems with their own.

• At the same time, governments around the world are finding it easier than ever to place limits on the internet in its present form.

The bottom line: China can't stop Web3 from happening. But, just as it has with social media, the Chinese government could easily home-grow a version of the new decentralized crypto-driven software that supports its authority instead of undermining its control.

• That would also give the rest of the world a playbook for how governments can tame this latest wave of software-driven disruption.

A non-profit group critical of tech companies is filing a complaint against Apple today with Customers and Border Patrol, seeking to have the agency block imports of iPhones and other products, Axios has learned.

• Campaign for Accountability's Tech Transparency Project argues that Apple's products rely on components made using forced labor in China and maintains the agency has the power to block imports under the Tariff Act of 1930.

Why it matters: Getting the agency to stop Apple from bringing its gear to the U.S. seems like a long shot, but the complaint could draw further attention to the supply chain used by Apple and other tech companies.

Catch up quick: A report by The Information earlier this year linked seven Apple suppliers to forced labor, including by Uyghurs living in Xinjiang.

• That report included information from Tech Transparency Project.
• The suppliers implicated ranged from those that make various tech components to a company that supplies uniforms for retail workers.
• Apple denied the allegation, telling The Information that it "found no evidence of forced labor anywhere we operate."

What they're saying: "Overall, Apple seems unable or unwilling to conduct basic due diligence research on its partners, or to acknowledge its repeated use of forced labor in China," the Tech Transparency Project says in its complaint, a copy of which was seen by Axios.

• "Customs and Border Protection must spur Apple and other companies doing business in China to respect the rights of Uyghurs."

Facebook released more information on Sunday about its research into Instagram's impact on teen girls and said the full picture shows the photo-sharing service has a largely positive effect, Axios' Sara Fischer and Scott Rosenberg report.

Driving the news: The move comes after the Wall Street Journal published a series based on leaked reports showing evidence of harm caused by Facebook.

What's next: Facebook's global head of safety Antigone Davis will testify at a Senate Commerce subcommittee hearing Thursday.

• A Facebook spokesperson told Axios the company will release the full presentation deck to the committee and is "evaluating how we can release it to the public at some point."

Details: Facebook's post argues that the WSJ report misrepresented the Instagram research by highlighting one negative finding about girls' body images and omitting more positive findings on 11 other "well-being issues."

• Even in that one area, Facebook said, the Journal misread a slide headlined "We make body image worse for 1 in 3 teenage girls."
• "While the headline in the internal slide does not explicitly state it, the research shows one in three of those teenage girls who told us they were experiencing body image issues reported that using Instagram made them feel worse — not one in three of all teenage girls," Facebook said.

Go deeper: Facebook's social balance is in the red

The standoff that saw Huawei CFO Meng Wanzhou jailed in Canada ended Friday after a deal between Meng and the U.S. Department of Justice under which the executive returned to China, but broader issues remain.

The big picture: The U.S. has put on a full court press over Huawei, citing security concerns. The American government is not only blocking the company from selling its gear here, but also imposing restrictions that limit the company from getting needed software and supplies.

Between the lines: Meng's detention since 2018 had become a flashpoint not only between China and the U.S., but also between China and Canada.

• That escalated after China arrested two Canadians, who were detained for more than 1,000 days. They were headed home this weekend, though, after the U.S. deal with Meng.

Yes, but: While this may remove Canada from its awkward spot in the middle, the U.S. continues to block Huawei from selling in the U.S. or purchasing from U.S. firms.

On Tap

• Code Conference kicks off in Beverly Hills, with Microsoft CEO Satya Nadella, AMD chief executive Lisa Su and Netflix chief content officer Ted Sarandos among the opening day speakers.
• Grace Hopper Celebration, which focuses on women in technology, takes place online this week.

ICYMI

• Google is said to be planning a big cut to its cloud app commissions, following a similar move by Microsoft. (CNBC)
• Apple is looking to fix a pair of iPhone 13 bugs, one affecting the "unlock with Apple Watch" feature and another related to third-party access to the device's higher screen refresh rate. (9to5Mac)

Meet the hamster trading cryptocurrencies — and outperforming the S&P 500.