• Sat, 24 Aug 2019, 08:03 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Chinese regulators issue joint statement against crypto-related fundraising activities

Mon, 27 Aug 2018, 04:19 am UTC

In a joint statement, Chinese regulatory authorities have issued a warning against illegal fundraising and trading activities in the name of blockchain.

The warning has been issued by the Banking Regulatory Commission, the People's Bank of China, the Ministry of Public Security, the State Administration for Market Regulation, and the Central Cyberspace Affairs Commission.

“Recently, some lawless elements have used the banner of “financial innovation” and “blockchain” to absorb funds through the issuance of so-called “virtual currency”, “virtual assets” and “digital assets”, infringing on the legitimate rights and interests of the public. Such activities are not really based on blockchain technology, but rather the practice of speculating blockchain concepts for illegal fundraising, pyramid schemes, and fraud,” they said (loosely translated).

The regulators also pointed out that the use of internet and online payment tools for facilitating cryptocurrency trading leads to a wider dissemination of related risks. Some projects also set up websites using overseas IP addresses, and “actually carried out activities for domestic residents and remotely controlled the implementation of illegal activities,” they added.

"Some of these projects tap celebrities and airdrop 'candies' as ways for promotion and solicitation. ... In fact, they manipulate the prices of such cryptocurrencies to make profits illegally," the regulators wrote (as quoted by CoinDesk). "Some individuals claim in chat groups on messaging applications that they are able to invest in overseas crypto projects on behalf of domestic investors as a broker. ... These claims are highly likely to be fraudulent."

They also cautioned the public against other fundraising methods such as "initial exchange offerings", "initial fork offerings" and "initial miner offerings".

The warning follows recent reports that Chinese regulators were seeking to block access to 124 cryptocurrency trading platforms with overseas IP addresses. CoinDesk also reported last week that payment platforms Alipay and WeChat have announced that they will prohibit users from using their platforms for crypto-related transactions.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,319.60 (+1.13%)
  • Ethereum (ETH) $192.22 (-0.27%)
  • XRP (XRP) $0.272600 (+0.25%)
  • Bitcoin Cash (BCH) $312.83 (+1.00%)
  • Litecoin (LTC) $74.27 (+0.31%)
  • Bitcoin (BTC) $10,319.60 (+1.13%)
Aug 23, 2019 (Friday)
11:35
Stablecoin project Terra receives funding from HashKey Capital
10:49
Three of the founding members of Libra Association consider backing out: Report
08:55
Overstock's Patrick Byrne steps down as CEO
08:52
Pundi X brings XPOS crypto payments to Venezuela's Traki retail stores
07:22
Blockchain startup Blockstack scores strategic investment from Japan's Recruit Holdings
07:19
BitGo announces support for multi-signature EOS wallet and custody services
06:39
US Treasury blacklists crypto addresses of suspected Chinese fentanyl traffickers
06:14
Chainalysis launches ‘Chainalysis KYT Alerts’ to detect suspicious cryptocurrency activity in real-time
05:13
Cryptocurrencies used to buy fentanyl, other illicit drugs: White House
05:04
Blockchain energy startup Power Ledger extends energy trading trial in Fremantle
03:53
Blockchain accelerator initiatives launched at the University of California campuses
Aug 22, 2019 (Thursday)
13:05
Crypto exchange Coincheck mulls launching IEO Platform
12:46
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
11:53
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
11:42
Sierra Leone launches blockchain-based National Digital Identity Platform
10:43
Blockchain startup Blocko secures $7.4M in Series B+ round from major South Korean financial institutions
09:52
Crypto Technicals: Ethereum Classic ignores crypto space weakness, extends gains to break above 200-DMA
09:16
Former Zaif exchange owner Tech Bureau to discontinue crypto business after completing customer refunds
08:32
Crypto Technicals: XLM/USD bearish trend intact, hits multi-month lows at 0.06542
07:33
Russian firm ICORating settles $270K fine with SEC for concealing ICO touting payments
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft