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Cryptocurrencies

Chinese government to become restrictive on ICOs

Monday 28 August 2017 | 10:34 AM CET

The Chinese government has been developing new rules against illegal financing that could be used to restrict initial coin offerings (ICOs).

The fifteenth article of the draft ruleset identifies cryptocurrency-based funding efforts as potential targets for investigations. The draft outlined that the government shall establish an interdepartmental committee to combat illegal fundraising. It also clarified, for the first time that participants of illegal fundraising shall be responsible for their own losses.

Currently, there are two laws dealing with illegal fundraising in Chinese crime law system. The crime of fund fraud, which used to be punishable by death, now carries a maximum sentence of life in prison, according to CoinDesk. The other one – the crime of illegally absorbing public deposits – carries a maximum sentence of 10 years in prison.

The Legislative Affairs Office of the State Council, the executive Branch of the Chinese government have released a draft of the regulations. Officials are soliciting public comments over September 2017 before officially commencing the legislative process.

More: Link
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