ICO is officially banned in China !!!

[travelgear17]

Breaking news!

ICO is officially banned in China!

Here is the joint announcement from The People 's Bank of China, Central Network Office, Ministry of Industry and Information Technology, State Administration for Industry and Commerce, China Banking Regulatory Commission, SFC, CIRC: http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/3374222/index.html

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近期，国内通过发行代币形式包括首次代币发行（ICO）进行融资的活动大量涌现，投机炒作盛行，涉嫌从事非法金融活动，严重扰乱了经济金融秩序。为贯彻落实全国金融工作会议精神，保护投资者合法权益，防范化解金融风险，依据《中华人民共和国人民银行法》、《中华人民共和国商业银行法》、《中华人民共和国证券法》、《中华人民共和国网络安全法》、《中华人民共和国电信条例》、《非法金融机构和非法金融业务活动取缔办法》等法律法规，现将有关事项公告如下：

一、准确认识代币发行融资活动的本质属性
代币发行融资是指融资主体通过代币的违规发售、流通，向投资者筹集比特币、以太币等所谓“虚拟货币”，本质上是一种未经批准非法公开融资的行为，涉嫌非法发售代币票券、非法发行证券以及非法集资、金融诈骗、传销等违法犯罪活动。有关部门将密切监测有关动态，加强与司法部门和地方政府的工作协同，按照现行工作机制，严格执法，坚决治理市场乱象。发现涉嫌犯罪问题，将移送司法机关。
代币发行融资中使用的代币或“虚拟货币”不由货币当局发行，不具有法偿性与强制性等货币属性，不具有与货币等同的法律地位，不能也不应作为货币在市场上流通使用。

二、任何组织和个人不得非法从事代币发行融资活动
本公告发布之日起，各类代币发行融资活动应当立即停止。已完成代币发行融资的组织和个人应当做出清退等安排，合理保护投资者权益，妥善处置风险。有关部门将依法严肃查处拒不停止的代币发行融资活动以及已完成的代币发行融资项目中的违法违规行为。

三、加强代币融资交易平台的管理
本公告发布之日起，任何所谓的代币融资交易平台不得从事法定货币与代币、“虚拟货币”相互之间的兑换业务，不得买卖或作为中央对手方买卖代币或“虚拟货币”，不得为代币或“虚拟货币”提供定价、信息中介等服务。
对于存在违法违规问题的代币融资交易平台，金融管理部门将提请电信主管部门依法关闭其网站平台及移动APP，提请网信部门对移动APP在应用商店做下架处置，并提请工商管理部门依法吊销其营业执照。

四、各金融机构和非银行支付机构不得开展与代币发行融资交易相关的业务
各金融机构和非银行支付机构不得直接或间接为代币发行融资和“虚拟货币”提供账户开立、登记、交易、清算、结算等产品或服务，不得承保与代币和“虚拟货币”相关的保险业务或将代币和“虚拟货币”纳入保险责任范围。金融机构和非银行支付机构发现代币发行融资交易违法违规线索的，应当及时向有关部门报告。

五、社会公众应当高度警惕代币发行融资与交易的风险隐患
代币发行融资与交易存在多重风险，包括虚假资产风险、经营失败风险、投资炒作风险等，投资者须自行承担投资风险，希望广大投资者谨防上当受骗。
对各类使用“币”的名称开展的非法金融活动，社会公众应当强化风险防范意识和识别能力，及时举报相关违法违规线索。

六、充分发挥行业组织的自律作用
各类金融行业组织应当做好政策解读，督促会员单位自觉抵制与代币发行融资交易及“虚拟货币”相关的非法金融活动，远离市场乱象，加强投资者教育，共同维护正常的金融秩序。

I am not able to get its point about this post due to lake of my skills in chaina language. would you please translate it anyone for getting better understanding.
thanks in advance.

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[n4poleon]

NEO's price took a hit. Panic sellers all over the place. I even witnessed a 115BTC buy order getting filled at 0.004btc. Maybe its a good time to scoop some. I do think NEO will still continue after all it is not just an ICO platform but a blockchain project.  

[kassimo]

Just as an additional highlight, from 3:
任何所谓的代币融资交易平台不得从事法定货币与代币、“虚拟货币”相互之间的兑换业务
法定货币 means literally "Legal currencies", 代币 means Tokens and “虚拟货币” means cryptocurrencies
So... exchange between fiat and tokens OR cryptocurrencies are officially banned. Even if the cryptocurrencies themselves are not banned, such action serves a great blow nevertheless.

No possibility that this means "no token/crypto or token/fiat trading?"

Did someone forget to tell the Chinese exchanges? Because their BTCCNY tickers are all chugging away normally right now. If cnLedger says that this doesn't affect cryptocurrencies, then I'm not jumping to the opposite conclusion yet.

In the FT's coverage of the story, they also seem to refer only to ICOs (the "cyber currency fundraising mechanism"), not assets like BTC:

Bitcoin eases after China blocks key cyber currency fundraising mechanism
https://www.ft.com/content/56035558-2fc8-3662-b649-01066f69e26d

I've updated my previous reply. Actually you did make me found something I am not quite sure about. Interesting though...

As for "no token/crypto or token/fiat trading", I go by my original translation
法定货币与代币、“虚拟货币”
与 serves more as "and" and 、serves more like a symbol combining the latter two terms into one single term. So it should be "no fiat/token or fiat/crypto trading" (source: I am a native speaker of Chinese)

[TahuDiniHari]

Maybe in China have certain thoughts about bitcoin. can also the government there a bit sentimental with bitcoin due to bitcoin ditemukaan by satoshi which incidentally comes from japan. you know that China and Japan will never get along

[buwaytress]

While I immediately disagree with central invervention, I would have to say that this is the right move, in the context of protecting a lot of normal people. This can only be the result of pressure from very vocal and public complaints against the majority of Chinese ICOs, mostly people new to crypto, burning entire life savings into buying something they didn't understand. There's an entire microcosm of Chinese forums and social media filled with "netizens" who got bit by the latest ICO hit and run. It's the fault of greedy people thinking they found the latest way to multiply their money without any effort.

This is really reminiscent of the steps the Chinese government took with so-called P2P lending platforms in China when hundreds of them (many accepting Bitcoin) fleeced millions of dollars from Chinese citizens under the guise of business lending. I'm almost certain the same groups running them are behind a lot of ICOs.

[uslfd]

Maybe in China have certain thoughts about bitcoin. can also the government there a bit sentimental with bitcoin due to bitcoin ditemukaan by satoshi which incidentally comes from japan. you know that China and Japan will never get along

Not really.
It's purely driven by concerns the ICO bubble grows into something more fraudulent causing instability in society.
If you followed Chinese financial market news closely, you'd know the chinese govt has had very extremem measures to cope with volatility in the stock market 2 years ago.
Whatever China govt does, they always mostly just care about stability as China is huge and difficult to manage.

Hence this has nothing to do with national sentiment or anything like that. it's really just for the sake of market stability.

[Benezim]

While I immediately disagree with central invervention, I would have to say that this is the right move, in the context of protecting a lot of normal people. This can only be the result of pressure from very vocal and public complaints against the majority of Chinese ICOs, mostly people new to crypto, burning entire life savings into buying something they didn't understand. There's an entire microcosm of Chinese forums and social media filled with "netizens" who got bit by the latest ICO hit and run. It's the fault of greedy people thinking they found the latest way to multiply their money without any effort.

This is really reminiscent of the steps the Chinese government took with so-called P2P lending platforms in China when hundreds of them (many accepting Bitcoin) fleeced millions of dollars from Chinese citizens under the guise of business lending. I'm almost certain the same groups running them are behind a lot of ICOs.

Well put, especially the part about protecting people, considering what happened in China in 2015/2016.

https://en.wikipedia.org/wiki/2015%E2%80%9316_Chinese_stock_market_turbulence

[CryptoLoverz]

this is actually a very sad problem, but china step for tires ico is right because some months is rampant once new ico ico that can not be controlled

[aleksej996]

Maybe in China have certain thoughts about bitcoin. can also the government there a bit sentimental with bitcoin due to bitcoin ditemukaan by satoshi which incidentally comes from japan. you know that China and Japan will never get along

I doubt that serious financial business is conducted based on the petty nationalism and grudges between countries. After all, no one believes that Satoshi was Japanese, so who would really care, besides he has nothing to do with Bitcoin anymore and definitely not with ICOs. This theory would be a really big stretch.

[newguy05]

In opposition to the intervention of the government, proper ICO's should be extracted from the others long time ago, this should be seen also in other countries as well in a short time. Also this is not a good feedback for bitcoin.

[bassong]

The war against cryptocurrencies have started. Little wonder the collective market cap shrunk over the weekend. I see neo,bitcoin and other alts lost ground. Hopefully it is temporary.

[pereira4]

Here's the list of ICOs banned by China:



Looks like nothing of value was lost. Purge that shit.

Once the markets realize this is not a global ban of all ICOs, but only some ICOs that no one even knows, BTC will be the first to go back up, followed by speculative altcoin money short after.

Stop falling for the good ol chinese tricks and traps and buy the dip.

[fossilized]

Let me help with the translation:

1. The previous translations are spot on. However, minor point is that it does not mention bitcoin or ethereum per say, but applies to all crytocurrencies or tokens.

2. Same. ICOs in progress/completed must refund investors.

3. Same.  Exchanges not allowed.

4. Same. Banks and financial institutions are not allowed to be involved in crypto.

5. ICO investors bear all losses in any event.

6. Warning to financial institutions not to get involved in cryptocurrency or else... (typical chinese paternalism)

[Zocadas]

Buz for investors it should noz have relevance, only for the projects, right?

[anglais]

Seems like the beginning of the end for unregulated ICOs.

KYC doesn't fix anything. It's the ICO owners that need to be reviewed, not the investors.

[lighpulsar07]

Well China is makes right decision banning ICO for good China is just protecting their people's wealth to those fraudulent ICO scams but it's quite disappointing that scammers ruined the name of ICOs and also for the legitimate ones. Now it is hard to choose and trust on ICOs because of these scammers.

[MV7]

Have they already officially banned it? I thought it was reports saying that the government would ban it and not an official law yet.

[n4poleon]

Well China is makes right decision banning ICO for good China is just protecting their people's wealth to those fraudulent ICO scams but it's quite disappointing that scammers ruined the name of ICOs and also for the legitimate ones. Now it is hard to choose and trust on ICOs because of these scammers.

I couldn't agree more, but at the same time they're excluding their people from potential legitimate ones, if there are such. In my opinion, it's a bold move for China.

[DreamTeamGG]

Does it mean, that all ICO in the world is banned by Chinese government?

[Zalfa_mui]

only two countries banned ico that is china and america ,, so there are still many countries that allow ico, we need not worry, maybe at this time, the news affecting bitcoin price, yesterday the price of $ 4900 bitcoin and now drops to 4200 $, altcoin price also down ,. I hope this is only temporary.