Chinese media has reported that the People’s Bank of China (PBOC) has determined the majority of initial coin offerings (ICOs) to be in violation of fundraising laws, prompting the cancellation of at least one major cryptocurrency event previously scheduled for September. The report has emerged following recent revelations that the PBOC has been in discussions regarding regulatory measures designed to curb the proliferation of ICOs in China.
Also Read: Chinese Officials Travel to US to Discuss Fintech and Cryptocurrency Regulations
The PBOC Is Alleged to Have Determined That “More Than 90% ICO Projects Could Be Violating Illegal Fundraising or Fund Fraud Laws”
Citing an anonymous source, Caixin has reported that Chinese regulators have deemed initial coin offerings to be in violation of fundraising laws. Caixin alleged that the People’s Bank of China has concluded that “more than 90% ICO projects could be violating illegal fundraising or fund fraud laws”, alleging that “the percent[age] of projects that [are] actually raising funds for investments is less than 1%”.
According to Caixin’s source, the PBOC’s determinations mark the imminence of a crackdown on ICOs. Caixin’s source described the the ICO industry as resembling a “flock of sheep” stating that the crackdown will be designed to target the “leading sheep of a flock” and that “there will be some exemptions for people who are just following the flock” – suggesting that authorities will pursue individuals who seek to conduct unlawful initial coin offerings, and that consumers who participate in ICOs may not be the subject of legal recourse.
Caixin Has Reported That Major Cryptocurrency Event, the 2017 DACA Blockchain International Summit, Has Been “Abruptly Halted”
Caixin reports that the 2017 DACA Blockchain International Summit scheduled for September 2 was “abruptly halted” just one day prior to the commencement of the cryptocurrency event as a consequence of the PBOC’s determinations. Caixin states that “all Blockchain events that supposed to be held in September in Beijing should postpone or be held in another city”, and suggests that the 2017 Global Blockchain Summit organized by Huobi scheduled for the 23rd of September will also likely be deferred. The 2017 Shape The Future Conference that was to be held on September 10 in China may be postponed, according to people familiar with the matter and an announcement on the matter should follow in a few days.
Last week, it was reported that China’s central bank was in discussions regarding a range of regulatory measures designed to curb the proliferation of ICO, including the consideration of a total suspension of all ICOs occurring in China. According to a report prepared by China’s National Internet Financial Security Technical Committee, 65 Chinese ICOs have raised approximately 2.6 billion yuan ($400 million USD) from 105,000 citizens so far during 2017.
Do you think that China will be able to effectively regulate and control the ICO industry? Share you thoughts in the comments section below!
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