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Cryptocurrencies

ICOs officially banned in China

Tuesday 5 September 2017 | 10:49 AM CET

China has outlined why it believes that ICOs are illegal under domestic law in a joint statement issued by seven financial regulators.

The People's Bank of China (PBoC), the Central Network Office, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission were among the authorities backing the statement.

The statement considers ICOs illegal securities issuance and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities. Furthermore, “as of the date of this announcement, all types of currency issuance financing activities shall cease immediately” and the regulation on trading platforms shall be tightened, it continues.

Moreover, organizations who have completed ICOs have to refund the investors and protect their rights, and people who refuse to cease ICO activities or refuse to refund investors will be investigated and punished according to the law.

More: Link
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