China Cracks Down on ICO’s, Raising Funds via Digital Currency

China Cracks Down on ICO’s, Raising Funds via Digital Currency

China just went to war on initial coin offerings (ICO’s), issuing a statement banning all new cryptocurrency funding raising activities. The ruling comes from China’s central bank, which issued a statement criticizing ICOs for “disrupting” the country’s financial order.

They didn’t stop there. They released a list of 60 ICO platforms that they have earmarked for inspections by financial regulatory bodies. They also banned all financial institutions from coming anywhere near an ICO: All financial institutions and non-banking payment institutions shall not directly or indirectly provide account opening, registration, trading, clearing and settlement services for token fundraising activities; shall not underwrite any insurance policy that relates to tokens and cryptocurrency, or include any token and cryptocurrency under the insurance policy coverage.

In addition, they instructed organizations and individuals that have completed fundraising through ICOs should make relevant arrangement to return funds, in order to protect the interests of investors and properly deal with risks. Last week, China’s National Internet Finance Association warned ICO investors to be wary of fraud,

The announcement was felt immediately in the crypto community as Bitcoin fell more than 5%, while Ethereum was down 12% at one point on Monday.

A full transaction of the statement can be found here, via Coindesk.