China Reiterates Strict Stance on ICOs

China reiterates strict stance on ICOs, while adding that t it would “crash” illegal operations of the firms that aim to provide ICO related services to the local residents. 

11 July, AtoZ Markets – The Central Bank of China has reportedly cut down on its commentary in relation to the ICOs while warning the firms that attempt to serve residents in China. The People’s Bank of China has issued a circular, where it has reiterated the current ban on ICOs and the urgency to follow regulatory mandates. 

China Reiterates Strict Stance on ICOs

The Chinese central bank’s vice governor, Pan Gongsheng, has stated during the bank’s Internet Finance Rectification Working Group meeting:

“We must remain vigilant.” 

Reportedly, the central bank has also mentioned that it would “crash” illegal operations of the firms that aim to provide ICO related services to the local residents. Considering “the emergence of some new Internet financial products and formats” during this and last years, the PBoC is willing to act accordingly in case such products “do not meet” the “existing legal and policy framework.”

Chinese ICO bank has been first enacted in September 2017. This year, the government has planned to deliver an opinion on the emerging Blockchain sector without cutting back any restrictive measures. Last month, the nation has published its latest ratings on cryptocurrencies. Soon, the authorities will also publish their Blockchain project ratings.

China Crypto Licensing Framework

Earlier this June, China Banking Regulatory Commission (CBRC) has published a working paper that has suggested the issuance of the licenses for cryptocurrency related businesses by the local regulators.

The paper has been entitled “The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain, and Digital Currency.” The paper is authorized by the researchers from CBRC, Li Wenhong, and Jiang Zeshen. The officials have published this paper this Wednesday. 

The paper is focused on the regulatory studies on cryptocurrency. It talks about a number of legal efforts made by different nations globally to govern businesses related to the cryptocurrency derivative trading. Moreover, it mentions ICOs.

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