China Intensifies Crackdown on ICOs, Crypto Exchanges

Apr 24, 2018 at 21:33

China is pressing hard on its clamp down on illegal fundraising activities such as initial coin offerings (ICOs) and cryptocurrency exchanges by keeping close tabs on interest rates offered by financial firms, according to a report by Reuters.

Chinese authorities have noted in news conference in Beijing a decline in these so-called illegal fundraising but “the situation remains severe.”

Because of this, the People’s Bank of China (PBOC) will keep a close tab on interest rates of private lenders, securities companies and futures firms.

The financial regulator also said it has closed down all platforms offering ICOs and bitcoin exchanges.

China said illegal fundraising activities are included in financing intermediaries, online finance platforms, real estate and agriculture.

These illegal fundraising activities—as China’s supreme court put it— have been causing severe damage in “market order and national financial security.”

In recent years, China has seen series of high-profile financial scams, causing investors to lose their life savings.

Authorities said illegal fundraising has made it way into the country’s real estate and pushed housing prices, to which
China’s housing ministry said it will improve monitoring of the property market and increase crackdown.