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China Bans Cryptocurrency ICOs

 1 min read / 

The People’s Bank of China (PBoC) and regulators have declared “initial coin offerings” illegal and halted all activity.#

Editor’s Remarks: ICOs are an unregulated cryptocurrency version of initial public offerings (IPOs) and have already gained attention from the US SEC who wants to increase scrutiny on them. But the PBoC has gone further and labelled the activity “a form of non-approved illegal public financing behaviour” that raises suspicion of “financial fraud.” There are 43 ICO platforms in China, and they have gained the attention of authorities after reportedly raising over $750m in August alone, compared with $400m in the first half of the year. The move should not be a surprise – President Xi Jinping sees “financial security” as a top priority as the government struggles to limit shadow banking, illegal lending and currency outflows and regulators have been consistently suspicious of unregulated crypto currencies’ role in capital flight and money laundering.

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