China has never been a friend to the crypto-verse, but it really despises Initial Coin Offerings (ICO).
The Middle Kingdom’s central bank recently released its latest public statement-salvo. It “reminded” Chinese investors that the risks of both cryptocurrencies and ICOs are potentially substantial. The Shanghai-based central bank stated in no uncertain terms what it thinks of ICO’s. They are a “serious disruption” to the global and domestic established financial, economic, and even social order per the PBOC. The central bank authorities reiterated their official stance in China that such ICO’s are both “illegal” and “unauthorized.”
Scam ICO’s Have Destroyed the Initial Coin Offerings’ Global Reputation
The Chinese have a point in their bias against ICO’s. They cannot stand that so much financial fraud has come from the so-called “illegal” token and related securities sales. They also abhor the pyramid schemes and what they call the “many other” illegal and criminal activities associated with ICO’s.
The PBOC central bank was also busily touting its success in nearly shutting down China-based ICO’s in the past year. China cut these down from 90 percent last year to less than five percent of volume from two years ago. They call this the primary reason their financial markets were protected from what they name the 2017 cryptocurrency bubble.
Chinese Central Bank Still Pursuing Offshore ICO’s Creeping Into China
The People’s Bank of China still sees much work to do in their unrelenting crusade against mainland ICO’s. They despise offshore exchanges that continue to seep into Chinese markets, enticing investors with illegal ways to circumvent the ban. It explains why the Office for Special Remediation of Internet Financial Risks is pursuing tough punishments now. One of these is an interesting ban on the IP addresses of 120 different organizations. They suspect these organizations of providing a Chinese mainland gate to domestic cryptocurrency traders.
China has also successfully closed down a range of networks for channeling payments to the offshore ICO operators. The Chinese financial authorities have already shut down over 3,000 different accounts. It appears that the Chinese really do have the muscle and willpower to defeat ICO’s after all.
Want the latest crypto news? Join our Telegram Channel