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People’s Bank of China Issues Fresh ICO Warning

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The People’s Bank of China have issued a fresh warning to investors to steer clear of ICOs. A bulletin on their website today (18th September) advises citizens not to get involved with ICOs, as they are typically financed illegally, and their own involvement may make them complicit by association. Part of the report reads [translated from Chinese]:

In recent years, speculative speculation related to virtual currency has prevailed, prices have skyrocketed, and risks have accumulated rapidly, seriously disrupting the economic, financial and social order. The main body of ICO financing is essentially unauthorised illegal public financing. ICOs are suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes and other illegal and criminal activities.

This warning follows a similar one only a few weeks ago (August 25th) and continues with the theme of toughness from official and government bodies in China. There have been widespread bans on Internet searches, chat groups, marketing and exchanges, trading and ICOs across China for quite some time, with seemingly no let-up in site. Major companies have been compliant with the government too, with the likes of Tencent, Alibaba and Baidu blocking and banning a range of sites and transactions connected to cypto.

The People’s Bank of China is the key controller of financial policies and regulations in China. It has the largest financial asset holdings of any bank in the world, and holds huge sway with the Chinese government. Their warnings, therefore, are likely to be effective in further curbing what is gradually decreasing crypto activity in the country. The report concludes: “Here, we remind consumers and investors to enhance their awareness of risk prevention and not to follow suit, such as discovering various types of ICO variants and organizations or individuals that continue to conduct ICO and virtual currency transactions for domestic residents, through the deployment of overseas servers. It may be reported to the relevant regulatory authorities, and they may report the case to public security for suspected crimes.”

Image Credit: Deposit Photos

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