New rules being developed by the Chinese government against illegal financing may be used to crack down on initial coin offerings (ICOs).
A draft of the regulations has been released by the Legislative Affairs Office of the State Council, the executive Branch of the Chinese government.
The text states:
If the department overseeing illegal fundraising activities found a fundraising without proper permission, or a fundraising that violates the relevant provisions of the State, and if one of the following circumstances is found, the department shall launch an administrative investigation. Other relevant departments shall cooperate with the investigation.
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to raise funds in the name of issuing or transferring equity, raising funds, selling insurance, or engaging in asset management activities, virtual currency, leasing, credit cooperation and mutual funds...
