Initial Coin Offerings (ICO) Still Popular In China Despite Ban

China Central Television (CCTV) has lashed out at the domestic initial coin offerings (ICOs) and said that ICO activity continues to intensify in spite of the 2017 ban.

CCTV, which is China’s highest-level mouthpiece of the government, said during its “Financial News” program that is aired every Monday night that the ban on ICO has not stopped people from engaging in cryptocurrency trading. The ban was issued last September by the People’s Bank of China with the objective to safeguard the interests of the citizens by preventing them from trading in cryptocurrencies and ICO.

CCTV Slams Air Coins

CCTV slammed the “air coins” phrase used by the Chinese crypto community, which is a reference to token projects that do not have legal backing by registered business entities. The outlet claimed that the air coin numbers have risen by 30 times since the ban.
“While many business entities have moved their projects overseas following the initial coin offerings ban, a lot of these ‘air coins’ carried on fundraising in China without migration because they are loosely organized as a temporary team, not even a formal business entity,” revealed the program.

Investigation Team Accuses OKCoin

Previously, OKCoin, one of the four largest exchanges worldwide, has been accused of continuing its operations in China and also offering unlicensed securities. There was an investigation conducted to find out their involvement in cryptocurrency trading in China by one Mr. Yang. He had revealed to reporters that the platform did not have the necessary qualifications or supervision required for legitimate operation as a digital currency trading platform. He further accused them of going against regulations by moving the firm overseas. While the exchange says that they are based out of Belize with a team in Hong Kong, Yang claims that they are actually operating from Beijing, with most users being Chinese.

The report by CCTV shows the latest effort made by local state media to educate people about what it regards as cryptocurrency market chaos. Meanwhile, the police force in China is doing everything they can to crack down on schemes that use initial coin offerings and token sales to generate funds from the public.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Smitha Nambiar is a highly experienced writer who believes in heavy research. She keeps looking for new updates related to cryptocurrency and helps her readers know about it.

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