ICO’s are Now Illegal in China!
Bitcoin has lost a little bit of its value in July, when China’s central bank initially said that coin offers are illegal. They demanded the banning of any fundraising activity right away. The immediate effect was the emergence of problems with the digital coin sales market.
The People’s Bank of China said on its website that they finished the ICO investigations. We found out that they will punish any future offers. As far as the current offerings are concerned, they will be penalized. The regulator said that the initiators have to refund all the amounts already invested, not specifying the method.
The website also specified that digital token financing and trading platforms can’t convert digital coins into fiat currencies. Those with digital tokens can’t use them as currency in terms of sales. Also, they have prohibited banks to offer any services to coin offerings.
Jehan Chu’s opinion
Jehan Chu, managing partner at Kenetic Capital Ltd. in Hong Kong, investor and token sales specialist, said that: “This is somewhat in step with, maybe not to the same extent, what we’re starting to see in other jurisdictions. The short story is we all know regulations are coming,”. He added that: “China, due to its size and as one of the most speculative IPO markets, needed to take a firmer action.”
ICOs are digital token sales that have grown considerably and unseen in the past year, reaching $ 1.6 billion. They have become a real threat to China’s finances, as it faces small problems.
Read more about what’s an ICO
Are ICO’s a threat to other banks?
Given the power they are demonstrating and the dangers they pose to the other finances, these type of fundraisings have drew the attention of other central banks.