China’s NIFA allows public to report illegal token sales

The National Internet Finance Association of China (NIFA), a self-regulatory organization in the field of internet finance, has implemented a feature on its platform to help governmental authorities in their clampdown of illegal initial coin offerings (ICOs).

CoinDesk reported that NIFA has added a new category – Token sales – to its platform where the public can report potentially illegal financial activities. The portal so far allowed the public to report illegal activities in areas such as online payments, equity financing, internet insurance, and peer-to-peer lending among others.

“Token Sales” is the latest addition to this list. The activities included on the website include operating fiat-to-crypto and crypto-to-crypto exchange platforms; directly or indirectly providing registration, trading, clearing and settlement services for token sales; and offering insurance services for crypto-related businesses.

Chinese regulatory authorities banned ICO and cryptocurrency trading last year. The authorities are continuing with their efforts to stop all such activities in the country.

Recently, five financial regulators issued a warning against illegal fundraising and trading activities in the name of blockchain. Domestic internet giants such as Baidu, Alibaba and Tencent are also supporting these efforts and have moved to block over-the-counter crypto transactions via payments applications as well as cryptocurrency-related content on their online forums.

NIFA was initiated by the PBoC in collaboration with relevant ministries and commissions including the CBRC, the CSRC, and the CIRC according to the stipulations in Guiding Opinions on Promoting the Healthy Development of Internet Finance jointly issued on July 18, 2015.