The People’s Bank of China (PBoC) has urged investors to be ever mindful of the risks associated with both Initial Coin Offerings (ICOs) and crypto trading.The statement was issued by Shanghai branch of the PBoC on September 18.
The “illegal” ICO financing model was criticized for posing a “serious disruption” to the “economic, financial and social order”: “[ICOs are] suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes and other illegal and criminal activities.”
The PBoC’s notice echoes the rough course that has been set by the country’s Office for Special Remediation of Internet Financial Risks, which imposed a ban on ICOs in September 2017. The document urges investors not to participate in tokensales of foreign startups and “avoid speculative trade in cryptocurrencies”.
At the same time, the Central Bank of China admitted that the Chinese citizens continue to conduct transactions with virtual currencies on “offshore exchanges,” promising to fight against this.
As a reminder, last month, Chinese WeChat, the messenger app owned by Tencent, banned Blockchain and cryptocurrency related media accounts. According to WeChat, some public accounts breached of the service’s “Interim Provisions on the Development of Public Information Services for Instant Messaging Tools” terms, that was introduced by the Cyberspace Administration of China on August 7.