This is part of a big crackdown by regulators in China on advertising, which includes gambling sites, healthcare, binary options and all crypto.
There's also the "paid ad" definition argument going on, where Baidu want to continue not clearly marking them as that would mean they have to pay a 3% tax on gross ad revenue.
The Bitcoin spin is just Bloomberg following its bash Bitcoin at every opportunity editorial policy.
I think the crackdown on the bad ads is quite good. There are many scam in the Chinese society and Baidu is responsible.