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The Chinese Financial Association warns against the trade of cryptocurrencies abroad, ICO

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The Chinese Financial Association warns citizens not to participate in cryptocurrency and initial placement of coins.

The National Association of Internet Finance in China (NIFA), a leading self-regulating Internet financing guild, has issued a new public notice urging investors to be wary of the risks associated with cryptocurrency trading on foreign platforms. The Chinese authorities, led by the People's Bank of China (the country's central bank), banned most of the ICOs in September 2017 and ordered the closure of domestic cryptocurrency exchanges. Highlighting the regulatory crackdown, NIFA claims that it has "monitored" individuals and institutions in China that continue to operate in the cryptocurrency space by trading on trading platforms at the same time. # 39; abroad.

"In this context, domestic investors will face some risk by moving to foreign platforms to participate in transactions [cryptocurrency trading]," read an excerpt from the notice.

The notice adds:

"Investors should be alert to the risks associated with ICO transactions abroad because some of the trading platforms have been closed and others have been banned from connection. There is no specific regulation abroad, the IFA transaction platforms are facing risks in system security, market manipulation and money laundering. "

NIFA, a self-regulatory organization established by the People's Bank of China (PBoC) in recent years, added that individuals and entities in the country continue to participate in OTC transactions supported by national interests. social platforms and several non-bank payment agencies. These operators participate in cryptocurrency transactions that are "manifestly inconsistent with current policy and regulations," adds NIFA's opinion.

NIFA's notice comes within a couple of weeks of widespread reports indicating that the Chinese financial authorities have weighed measures to block domestic access to cryptocurrency trading platforms globally.

A leaked internet memo from a government meeting saw PBoC deputy governor, Pan Gongsheng, urging the government to impose a total ban on centralized trading of cryptocurrencies. The head of the central bank also urged the Chinese regulator – one of the regulators and legislators of the meeting – to censor Chinese citizens against international cryptocurrency and domestic mobile applications, due to concerns over the flight of capital.

"The vast majority of investors should be aware that all of these acts of service provision for" virtual currency "transactions are subject to political risks," NIFA's recalls to crypto traders. currency and investors.

Image of Shutterstock Yuan Coins.

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