The People’s Bank of China (PBoC), has issued today yet another public reminder to investors in which they warned them against the risks that come with Initial Coin Offerings (ICOs) and crypto trading.
The notice was released to the public by the bank’s headquarters in Shanghai, restating the country’s opposing stance regarding cryptocurrencies, having first implemented a blanket ban on ICOs in September 2017.
The notice issued today disapproves of the “unauthorized” and “illegal” ICO financing model for representing a “serious disruption” for the “economic, financial and social order”:
“[ICOs are] suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes, and other illegal and criminal activities.”
The PBoC has today addressed the positive results of the country’s harsh restrictions put on ICOs and other crypto-related operations, claiming that:
“[T]he global share of domestic virtual currency transactions has dropped from the initial 90% to less than 5%, effectively avoiding the virtual currency bubble caused by skyrocketing global virtual currency prices in the second half of last year in China’s financial market. The impact has been highly recognized by the community.”
However, the bank still realizes that there are more challenges it needs to address, particularly the pervasiveness of offshore exchanges which are used by investors to bypass the mainland ban.
The PBoC mentioned that the Office for Special Remediation of Internet Financial Risks has now implemented a set of targeted measures, such as blocking up to 124 IP address suspected of serving as an entry to local crypto traders.
In addition to this, they have also closed nearly 3,000 accounts in their attempt to strengthen monitoring and clear up payment channels. Lastly, the notice mentions the recent measures implemented for countering the circulation of materials that might generate crypto “hype”.
Beijing has been very active this summer, as it has released a slew of reinforced anti-crypto measures, which also saw a ban on commercial sites from hosting crypto-related events in certain districts.