ICO is termed as "unauthorized illegal public financing" by Chinese Regulator

[hl5460]

#ICO is termed as "unauthorized illegal public financing" and "suspected of illegal fundraising" in the regulation paper.


https://twitter.com/redtheminer/status/904541548599164928

New ICO Halted in China, Platforms and Projects Facing Regulatory Scrutiny
update: http://news.8btc.com/new-ico-halted-in-china-platforms-and-projects-facing-regulatory-scrutiny

[1714139572]

1714139572

[orions.belt19]

Does the article explain why or did it discuss more on the matter? I can't read Chinese and I can only comment on the headline.

I heard that Bitcoin is restricted in China, that it is recognized as legal there. Perhaps a China man got scammed in an ICO which lead to the term ICO dubbed as thus. I was actually surprised that China chose to recognize Bitcoin as legal because they basically control everything there. Their internet is very regulated and I think you can't even open google their because they have their own chinese google. Perhaps the term "ICO" was recognized as such so as to limit its use. China is a regulation buff and they must have wanted to limit on illegal activities done through crypto and ICOs.

[hl5460]

Does the article explain why or did it discuss more on the matter? I can't read Chinese and I can only comment on the headline.

I heard that Bitcoin is restricted in China, that it is recognized as legal there. Perhaps a China man got scammed in an ICO which lead to the term ICO dubbed as thus. I was actually surprised that China chose to recognize Bitcoin as legal because they basically control everything there. Their internet is very regulated and I think you can't even open google their because they have their own chinese google. Perhaps the term "ICO" was recognized as such so as to limit its use. China is a regulation buff and they must have wanted to limit on illegal activities done through crypto and ICOs.

A translation is under way.

[MattHoo]

Why the ICO is termed as "unauthorized illegal public financing" and "suspected of illegal fundraising" by Chinese regulator is because many startups or organizations scammed people by publishing their tokens for investors, and stated they can get profitable from the project. But many of them disappeared after the fundraising activities are closed.  

[Scorpion]

I'll wait for the article to be translated but still China wants to regulate everything financial but they need to step up regulated health and work conditions in their country first before they start regulation a decentralized blockchain entity.

[MAbtc]

#ICO is termed as "unauthorized illegal public financing" and "suspected of illegal fundraising" in the regulation paper.

https://twitter.com/redtheminer/status/904541548599164928

Very interesting. I look forward to the translation. Is it painting all ICOs with a broad brush -- are all ICOs considered to be illegal? Or just some, like the SEC suggested for Americans?

Anybody have any idea how big the Chinese market is for the ICO sector, and whether this will curb Chinese investment? Or will people just ignore the regulatory guidance and/or use VPN to get around any restrictions placed by ICO administrators?

[Red-Apple]

it is about time that someone did something about ICOs, they are getting out of hand and the scams that happen are increasing day by day.

the non-so-scammy ones are not so glamorous either. they are useless "ideas" without any productivity. they just play at some emotions with some pretty design and pretend they are doing something useful. in the end if you ask for results a couple of months after they are released they will laugh at you.

[hl5460]

I'll wait for the article to be translated but still China wants to regulate everything financial but they need to step up regulated health and work conditions in their country first before they start regulation a decentralized blockchain entity.

A regulation document on cracking down ICO has been confirmed authentic by Caixin  on 4th Sep. ICO is termed as unauthorized illegal public financing, suspected of illegal fundraising, illegal securities issuance, illegal token issuance and activities involving financial fraud and MLM. According to the official link from PBOC, the document is jointly released by seven ministries and commissions. Currently all ICO are halted in China. A list of 60 ICO-related platforms is provided for local regulators. Existing projects and platforms will face scrutiny.

http://news.8btc.com/new-ico-halted-in-china-platforms-and-projects-facing-regulatory-scrutiny

[stompix]

Currently all ICO are halted in China. A list of 60 ICO-related platforms is provided for local regulators. Existing projects and platforms will face scrutiny.

http://news.8btc.com/new-ico-halted-in-china-platforms-and-projects-facing-regulatory-scrutiny

How do you even do this?
You can't prevent Chinese to send coins to a foreign exchange.

This is just for ICOs that are being released in Chinese exchanges.The ban will have no effect whatsoever.

[hl5460]

Currently all ICO are halted in China. A list of 60 ICO-related platforms is provided for local regulators. Existing projects and platforms will face scrutiny.

http://news.8btc.com/new-ico-halted-in-china-platforms-and-projects-facing-regulatory-scrutiny

How do you even do this?
You can't prevent Chinese to send coins to a foreign exchange.

This is just for ICOs that are being released in Chinese exchanges.The ban will have no effect whatsoever.

But that's scary enough for cryptocurrency newbies.

[davegee]

This whole sea of red is blatant manipulation by big wallets. Noobs running scared on chinese news (reminds me of 2013 when there was a chinese ban every week), dumping their coins. Then the big balls mop em up...

[DoublerHunter]

I don't agree with their opinion about the ICO as an unauthorized illegal public financing but it is a good or positive news for me because, i am a trader and i trade based on the news and thanks for a bad news because it drives the prices of altcoins in a very low price and the whole markets are now on sale and if you are wise then you will scoop the blood and buy those to save some of our bitcoins because of the cheaper rate.

[cellard]

#ICO is termed as "unauthorized illegal public financing" and "suspected of illegal fundraising" in the regulation paper.

https://twitter.com/redtheminer/status/904541548599164928

Very interesting. I look forward to the translation. Is it painting all ICOs with a broad brush -- are all ICOs considered to be illegal? Or just some, like the SEC suggested for Americans?

Anybody have any idea how big the Chinese market is for the ICO sector, and whether this will curb Chinese investment? Or will people just ignore the regulatory guidance and/or use VPN to get around any restrictions placed by ICO administrators?

Everyone that wants to invest will still find a way to invest, there are an endless sea of VPNs now to bypass stupid bans. Also when it comes to regulation, China seems to be too stupid to realize how by doing this they may be losing on the next legit coin that challenges Bitcoin and may be funded thought an ICO. They are stopping innovation. I understand that people that aren't knowledgeable should be protected from scammers, but not at the cost of killing all possible innovation founded through an ICO. ICO doesn't mean guaranteed scam, so I hope this ban doesn't mean a ban of all ICOs, but some ICOs.

[hl5460]

I don't agree with their opinion about the ICO as an unauthorized illegal public financing but it is a good or positive news for me because, i am a trader and i trade based on the news and thanks for a bad news because it drives the prices of altcoins in a very low price and the whole markets are now on sale and if you are wise then you will scoop the blood and buy those to save some of our bitcoins because of the cheaper rate.

Many MLM schemes or scammers are taking advantage of ICO. If you have ever been to some of the previous "blockchain" summits, you won't miss the elderly who know nothing about the technology.

[hl5460]

I don't agree with their opinion about the ICO as an unauthorized illegal public financing but it is a good or positive news for me because, i am a trader and i trade based on the news and thanks for a bad news because it drives the prices of altcoins in a very low price and the whole markets are now on sale and if you are wise then you will scoop the blood and buy those to save some of our bitcoins because of the cheaper rate.

Many ordinary Chinese wants to jump in the fast-track to overnight millionaire.


http://news.8btc.com/ifcert-release-ico-report-of-china-65-projects-raised-2-1-billion-cny-on-43-platforms

[Slowhand26]

ICO is sort of MLM? I don't have much knowledge about MLM, but does MLM put their funds into trading paltforms like ICO? ICO is like crowdsourcing and only difference, it's being done digitally and not the traditional money crowdsourcing. Does anyone know how China will prevent ICO into their country? Maybe those locals who will try to establish ICO will be prohibited, but how about those international ICO? What will be their measures preventing it to their country? This is something good to discuss with.

[HabBear]

Guys, this is the third thread on the same topic on the front page of this board.

Can you all please READ THE FORUM before posting duplicate topics?

Please forward future comments to the existing and first thread found HERE.

EDIT: Just realized this post was the first created, others just have more posts. I'll share the same advice with the other threads.

[karmamiu]

#ICO is termed as "unauthorized illegal public financing" and "suspected of illegal fundraising" in the regulation paper.

https://twitter.com/redtheminer/status/904541548599164928

Very interesting. I look forward to the translation. Is it painting all ICOs with a broad brush -- are all ICOs considered to be illegal? Or just some, like the SEC suggested for Americans?

Anybody have any idea how big the Chinese market is for the ICO sector, and whether this will curb Chinese investment? Or will people just ignore the regulatory guidance and/or use VPN to get around any restrictions placed by ICO administrators?

Everyone that wants to invest will still find a way to invest, there are an endless sea of VPNs now to bypass stupid bans. Also when it comes to regulation, China seems to be too stupid to realize how by doing this they may be losing on the next legit coin that challenges Bitcoin and may be funded thought an ICO. They are stopping innovation. I understand that people that aren't knowledgeable should be protected from scammers, but not at the cost of killing all possible innovation founded through an ICO. ICO doesn't mean guaranteed scam, so I hope this ban doesn't mean a ban of all ICOs, but some ICOs.

                  I guess they saw crypto currency as a threat to their country and maybe they really think that it does that is also maybe why they see it as illegal, but it is just in my own point of view. Well still investors doesn't really care anything about that, and i usually think and according to what you said they will finds its way to invest for their own good, besides we cannot stop them by just telling, it is their own money and decision in the end.

[hl5460]

#ICO is termed as "unauthorized illegal public financing" and "suspected of illegal fundraising" in the regulation paper.

https://twitter.com/redtheminer/status/904541548599164928

Very interesting. I look forward to the translation. Is it painting all ICOs with a broad brush -- are all ICOs considered to be illegal? Or just some, like the SEC suggested for Americans?

Anybody have any idea how big the Chinese market is for the ICO sector, and whether this will curb Chinese investment? Or will people just ignore the regulatory guidance and/or use VPN to get around any restrictions placed by ICO administrators?

Everyone that wants to invest will still find a way to invest, there are an endless sea of VPNs now to bypass stupid bans. Also when it comes to regulation, China seems to be too stupid to realize how by doing this they may be losing on the next legit coin that challenges Bitcoin and may be funded thought an ICO. They are stopping innovation. I understand that people that aren't knowledgeable should be protected from scammers, but not at the cost of killing all possible innovation founded through an ICO. ICO doesn't mean guaranteed scam, so I hope this ban doesn't mean a ban of all ICOs, but some ICOs.

                  I guess they saw crypto currency as a threat to their country and maybe they really think that it does that is also maybe why they see it as illegal, but it is just in my own point of view. Well still investors doesn't really care anything about that, and i usually think and according to what you said they will finds its way to invest for their own good, besides we cannot stop them by just telling, it is their own money and decision in the end.

they saw ICO as a threat. Bitcoin is just too strong and too decentralized to ban, as one pboc official admit. ICO-based coins are centralized and vulnerable to censorship.