• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Bitcoin Casino ReviewsTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Bitcoin Casino ReviewsTry
No Result
View All Result
NewsBTC
No Result
View All Result
People's Bank of China
Nexo Logo

People’s Bank of China Issues New Warning Against ICOs and Cryptocurrencies

Cole Petersen by Cole Petersen
4 years ago
in ICO
Reading Time: 2 mins read
Advertisement

The People’s Bank of China (PBoC) has issued a new warning to citizens regarding investments in initial coin offerings (ICOs) and cryptocurrencies, amidst reports detailing how Chinese citizens were bypassing the cryptocurrency restrictions.

This latest warning comes more than a year when China’s central bank first released their unprecedented ban on ICOs.

In the notice, the PBoC reminds investors of the illegality of the ICO fundraising model, saying that ICOs are “suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes and other illegal and criminal activities.”

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

People’s Bank of China ICO Ban Successful, But Still Easy to Circumvent

In the official notice, the PBoC also brags about the successfulness of their cryptocurrency ban, which has reduced Yuan trading volume to under 1% of the global trading volume. In addition to reducing cryptocurrency trading volume, the central bank also hails their more recent ICO ban as a success, saying that:

“The global share of domestic virtual currency transactions has dropped from the initial 90% to less than 5%, effectively avoiding the virtual currency bubble caused by skyrocketing global virtual currency prices in the second half of last year in China’s financial market. The impact has been highly recognized by the community.”

Since the ban, the government has shut down 88 ICO trading platforms and 85 ICO projects operating in the country or catering to investors based in the country.

Although the ban, which was first announced in September of 2017, has reduced ICO trading volume, Chinese investors are using multiple methods to circumvent the ban. This is mainly through the use of Virtual Private Networks (VPNs) and offshore exchanges with constantly changing domain names.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Some Chinese investors are even turning to peer-to-peer transactions to purchase shares of ICOs, by paying people located in other countries in fiat currency to transfer the tokens.

The regulatory authority notes that they are working tirelessly to stop illegal trading through various methods, including “cleaning up” payment channels and strengthening their ability to monitor financial transactions.

The report also importantly notes that their new methods of restricting the ICO industry have been successful, and that they have recently blocked 124 IP addresses, and have closed 3,000 accounts as a result of their increased oversight.

Read our comparison of 50 different crypto casinos. Find out who has most generous bonuses, best UX, knowledgeable customer support and best provably fair games.

At the initial time of the Chinese ICO ban last year, the PBoC stated that:

“As of the date of this announcement, all types of token issuance financing activities shall cease immediately. The organizations and individuals who have completed the financing of tokens should make arrangements for repatriation and so on, reasonably protect the interests and properly handle the risks.”

The 2017 announcement heavily impacted the cryptocurrency markets, sending multiple cryptos down by greater than 10%.

Chinese companies have also been working to shut down cryptocurrency and ICO operations communicating with investors through their platforms, including WeChat and Tencent, who have censored multiple cryptocurrency news publications and peer-to-peer cryptocurrency exchange operations.

The Chinese government is showing no signs of loosening regulations on cryptocurrencies, and it is unclear what further actions they will take to stop the widespread illegal trading activity taking place in the country.

Featured image from Shutterstock.
Tags: chinacryptocurrency banICO BanICOSpboc
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Related Posts

iota

IOTA Price Hits 3-Year High as Focus Shifts on IoT Protocol Overhaul

1 year ago
altcoin crypto bitcoin ieo ethereum

This Class of Once Hyped Altcoins Is Headed To Zero

3 years ago
crypto optimism

Crypto CEO Optimistic Over US Regulatory Outlook

3 years ago
cryptocurrency bitcoin scam

Zambian SEC Warns Investors About Scam Cryptocurrency Investments

3 years ago
bitcoin, ethereum

Ethereum Stays in Massive Downtrend Against Bitcoin

3 years ago
Kin Appeals to Crypto Space for Help with Legal Fees to Fight SEC for Regulatory Clarity

ICO Law Specialist Calls for Kik CEO to Stand Down in Crypto/Securities Case vs SEC

3 years ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

GNOX (GNOX): Likely Top 50 Crypto Similar To EOS (EOS) And Sandbox (SAND) After Presale Sold-Out Quickly

August 14, 2022

Gnox (GNOX), Sandbox (SAND) and Decentraland (MANA): The Most Promising Investments in 2022

August 14, 2022

HypaSwap, Bitcoin, and Solana – Crypto Crash 2022 Buy For Massive Bull Run Profits!

August 14, 2022

How Eco-Friendly Is Crypto? A Look At Proprivex, Ethereum, and Bitcoin

August 14, 2022

Earn Rewards From Quilvius Using Bitcoin

August 13, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Bitcoin Casino Reviews

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.