Peoples Bank of China calls all ICOs to stop

Peoples Bank of China calls all ICOs to stop

The Peoples Bank of China, PBOC said all initial coin offering, ICOs in China must be stopped immediately.

The PBOC said many ICOs are used to finance illegal activities as well as money laundering and criminal organizations that are hard to track by law enforcement agencies.

This development is a follow up to a warning issued by the National Internet Finance Association of China (NIFA) which warned its members that ICOs are posing risks to China’s economic stability.

NIFA said in the statement that:

Recently, various projects that have been raised in the name of ICO (Initial Coin Offerings) have grown rapidly in the country, disrupting the socioeconomic order and creating a greater risk risk. To protect the legitimate rights and interests of the public, the relevant risk issues are as follows:

First, some institutions at home and abroad use all kinds of misleading propaganda means to ICO in the name of engaged in financing activities, the relevant financial activities without any permission, which is suspected of fraud, illegal securities, illegal fund-raising and other acts. The majority of investors should remain sober, vigilant, beware of being deceived. Once found to have involved in illegal acts, should immediately submit to the public security organs.

Second, due to ICO project assets are not clear, lack of investor appropriateness, a serious shortage of information disclosure, investment activities are facing greater risk. Investors should be calm judgments, be careful to take their own investment risk.

Third, China Internet Finance Association member units should take the initiative to strengthen self-discipline, to resist illegal financial behavior.