Skip to content

China says it "secured" ICOs and cryptocurrency

Join our community of 10,000 merchants on for only $ 39 a month

Chinese financial authorities, including the central bank and other regulators, intensify their massive crackdown against illegal fundraising activities.

At a press conference Monday in Beijing, the Chinese authorities said that they would closely monitor the interest rates charged by private sector companies and financial companies in order to To increase their monitoring of illegal fundraising.

In particular, the People's Bank of China, the country's central bank, said that it would continue to reduce the risks of Internet financing after stating that it had "closed safely" all initial platforms for the supply of coins and cryptocurrency. the country, reports Reuters.

As previously reported, China issued for the first time a blanket ban on all national ICO platforms on September 4, 2017, following the decision with restrictions to effectively shut down the industry. of domestic cryptocurrency.

The Chinese encrypted claws of last year largely began in early January, shortly after Bitcoin reached the $ 1,000 peak then celebrated. The move largely offset China's influence on world cryptocurrency prices, after accounting for more than 90% of transactions in 2016.

However, research conducted by the Chinese internet finance association revealed that Chinese citizens continued to participate in the crypto trade through the exchanges and platforms of the Internet. OIC abroad. In February, a PBoC-affiliated newspaper revealed that the Chinese authorities were preparing to block all websites, domestic and foreign, related to the cryptocurrency trade and country offices.

In what is actually considered its final crackdown, Chinese authorities began targeting domestic crypto traders by checking their bank accounts with the added threat of frozen assets and even blocking them from the domestic financial system. All this has allowed the Chinese authorities to significantly reduce the trade in crypto, even if they have not managed to eradicate them completely.

See also  Stripe payment processor walks away from Bitcoin

Meanwhile, financial scams involving illegal fundraising are particularly common in China, reaching an estimated $ 36.5 billion (251.1 billion yuan) in 2016, spread over 5,000 new cases criminals according to a Chinese news agency. More than 30% of these cases involved private investment platforms.

Follow us on Telegram.