Chinese Regulators Warn of New Cryptocurrency Crowdfunding Models
China’s Regulatory Authorities Issue Joint Warning Against Illegal Fundraising And Trading Using Blockchain And Cryptocurrencies, CoinDesk Writes.
The warning was issued on Friday by six leading regulators: the People’s Bank of China, the Banking Regulatory Commission, the Securities Regulatory Commission, the Ministry of Public Security, the Central Cyberspace Commission and the State Administration for Market Regulatory Affairs..
It is noteworthy that special attention in the publication is paid to the activities of companies using foreign IP addresses and at the same time attracting Chinese investors, as well as mobile tools and payment instruments on the Internet that can be used to trade cryptocurrencies..
“Some of these projects are hiring celebrities and handing out candy as a way to promote and attract investors. In reality, they manipulate the prices of cryptocurrencies for the sake of illegal enrichment, ”the warning says. “Some individuals say in chat groups of instant messengers that they can invest in foreign projects on behalf of local investors as a broker. With a high degree of probability, these statements are spread by scammers “.
Regulators have also warned the public against engaging in campaigns that use new fundraising models other than initial coin offerings (ICOs), such as initial exchange offerings, initial fork offerings and initial miner offerings, all of which are used to speculate in cryptocurrencies..
Earlier, Chinese regulators decided to close access to more than 100 overseas trading platforms for local traders. WeChat Pay and Alipay have also agreed to partner with the government and have pledged to suppress OTC cryptocurrency trading activities on their platforms..