China bans Initial Coin Offerings calling them ‘illegal fundraising’

China bans Initial Coin Offerings calling them ‘illegal fundraising’

China bans Initial Coin Offerings calling them ‘illegal fundraising’

Written by Staff Writer

05 Sep, 2017 | 4:08 pm

China on Monday banned and deemed illegal the practice of raising funds through launches of token-based digital currencies.

The move was targeted at so-called Initial Coin Offerings (ICO) in a market that has exploded since the start of the year.

ICOs have become a bonanza for digital currency entrepreneurs, globally and in China, allowing them to raise large sums quickly by creating and selling digital “tokens” with little or no regulatory oversight.

As part of the ban, Chinese authorities have called on individuals and organisations to refund investors for any amount raised through ICOs.

The move is aimed at protecting investors and “dealing with the risks properly”, said a joint statement from the People’s Bank of China, securities and banking regulators and other government departments issued on Monday.

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