The People’s Bank of China (PBoC), the country’s central bank, issued a public notice requesting investors giving them information of risks in cryptocurrency trading and initial coin offerings (ICOs)
Recently People’s Bank of China Shanghai Financial Services stated that the main body of ICO financing will be important for an unauthorized unlawful public financing. The relevant payment channels have been checked and closed about 3,000 accounts engaged in virtual currency transactions. It was suspected of unlawfully selling tokens, illegitimately issuing securities, illegal criminal activities, financial fraud, pyramid schemes and other illegal and criminal activities.
The national Internet financial risk special rectification leading group made a decision to clean up and rectify the ICO and virtual currency trading venues. It timely issued the related risks in the bud where they had to maintain financial stability. However, the tracking and monitoring found that the subsequent fresh situations occurred in domestic and overseas ICO.
The notice also mentioned that consumers, as well as the investors, will improve their awareness of risk prevention discovering many types of ICO variants and governments or persons that continue to conduct ICO and virtual currency transactions for various reason, as stated in Shanghai PBC public notice.
As of today, it is noticed that the cryptocurrency trading activity among domestic investors continued to thrive in offshore exchanges despite the mainland ban. A report published in CCN stated that tech companies behind messaging platforms and online public forums such as Baidu, Tencent and Alibaba have all banned or blocked cryptocurrency transactions on their platforms. The central bank has also warned the domestic residents that they need to report the operators for any variant of ICOs for any supposed unlawful activity or illegal crimes. China’s complete curbs on the cryptocurrency sector led by the Shanghai PBoC has seen China’s effect on crypto trading markets and worldwide prices decrease significantly.[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. ]