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Author Topic: Chinese officials have declared that the ICO is illegal and that ICO-funded orga  (Read 182 times)
thanhnc46947
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October 06, 2017, 03:39:15 AM
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https://photos.google.com/share/AF1QipOwUoqv4Mkykw6iwTaCXoMV8V-Hc5bQ-H879hOQzCWyrg1k0CNPbSpYNEqDSP7X7g?key=aXBXR1AzTC1DV0NKRWpUY0l6X3gxcDA1aFZLT3Zn
Chinese regulators are beginning to closely monitor the first virtual currency offering (ICO) in China - an industry worth hundreds of millions of dollars.

Local news agency Caixin reported that a risk monitoring committee in the country's Internet finance sector has issued a notice saying that new projects to mobilize cash or other virtual currency through encryption will be banned. Caixin added that the government would crack down on related frauds.

This document defines ICOs as an unauthorized fundraising tool and may involve financial scams, according to Caixin. The Commission provided a list of 60 major ICO platforms to local finance regulators.
Seven government agencies including the People's Bank of China, the China Securities Regulatory Commission, the China Banking Regulatory Commission and the China Insurance Regulatory Commission issued a joint statement when they prompted Against the background that ICOs are unauthorized fundraising activities.

The statement says the administration is forbidding all organizations and individuals to raise capital through ICO activities and that all banks and financial institutions should not be involved in ICO business.

Organizations and individuals who have completed the fundraising through the ICO should arrange to return the money called to protect the interests of the investor.

According to Coindesk data, Bitcoin prices fell more than 5 percent on Monday to about $ 4,376.42 after the news. Ethereum also fell more than 12%.
CO has become a major vehicle for raising funds for blockchain-based projects. Companies that create and issue digital tokens can be used to pay for goods and services on their own or as an investment. They provide prospectuses describing the platform, software or product they are trying to build, and then people purchase these tokens using widely accepted virtual currencies such as bitcoin or ethereum.

Start-ups around the world have called more than one billion dollars this year from ICO activities. In China, ICO operations have raised at least 2.62 billion yuan ($ 400 million), according to Reuters, citing local media.

Some of China's ICO platforms have stopped their service. ICOINFO said on its website that it had voluntarily suspended the "all ICO-related functions on the site" indefinitely.

BTCC, Bitcoin Exchange in Shanghai, said it had stopped trading ICOCOIN at the weekend.

Caixin further reported that the authorities had ordered a suspension of a blockchain conference over the weekend, citing concerns about the ICO being used to raise funds illegally.
Last week, the National Internet Finance Association of China warned ICO investors should be wary of fraud and urged them to report any doubts to the police.

Part of the appeal of ICOs is that early stage startups can use them to make a large sum of money without receiving similar supervision when approaching venture capitalists.

China is not the first country to demonstrate this growing space management intention. Regulators in the United States and Singapore highlighted the risks of money laundering and fraud that investors face when buying into a digital token offering. But experts have warned that managers need to understand more about this space so as not to strangle innovation.
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jseverson
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October 06, 2017, 04:38:45 AM
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I'm not saying I agree with this move, but you can kind of see where they're coming from. Scams are rampant within ICOs, and they can't keep these scammers going unchecked. Still, though, there has to be some kind of middle ground here. ICOs are not inherently bad, and can actually be a legitimate way of earning funding. I hope they legalize it sometime in the future once they find a way to efficiently regulate them.

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Organizations and individuals who have completed the fundraising through the ICO should arrange to return the money called to protect the interests of the investor.

Ballsy move to protect their citizens. It's sad for legitimate ICOs though. RIP innovation.

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October 06, 2017, 01:09:57 PM
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I'm not saying I agree with this move, but you can kind of see where they're coming from. Scams are rampant within ICOs, and they can't keep these scammers going unchecked. Still, though, there has to be some kind of middle ground here. ICOs are not inherently bad, and can actually be a legitimate way of earning funding. I hope they legalize it sometime in the future once they find a way to efficiently regulate them.

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Organizations and individuals who have completed the fundraising through the ICO should arrange to return the money called to protect the interests of the investor.

Ballsy move to protect their citizens. It's sad for legitimate ICOs though. RIP innovation.

Although their are really ICO's that has good project but i think it's a great move for China to ban ICO's on their accord. I mean every scam starts with honest to goodness project but when their stakes got high, they would tend to abandon their visions. I don't generalize but let us get real here. Scammers make some angelic talks to promote their goods but id doest end the way they said it. I am not saying all ICO's are like this because there had been ICO's that improved and help cryptocurrencies gain positive comments. It is just their really those who did some negative expectations and it is becoming hard to identify whats bad or good.
Lieldoryn
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October 06, 2017, 02:56:07 PM
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What method do you propose to define a swindler is ICO or not? Until the project will not be implemented in life we can not know this. How to distinguish a cheater from the businessman-the loser? To all these questions no answers. The ban will not solve the problem and the Chinese will participate in ICO through other countries. The outflow of capital is not reduced.
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February 15, 2018, 01:05:06 PM
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the ban in my opinion isn't doing any good, why place a ban on something that has come to stay? crypto-currency is the future. if people would just do their own research they wouldn't have problems with scam ICOs.
Samarkand
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February 17, 2018, 10:20:18 AM
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the ban in my opinion isn't doing any good, why place a ban on something that has come to stay? crypto-currency is the future. if people would just do their own research they wouldn't have problems with scam ICOs.

The article is not talking about cryptocurrencies. The new regulations and the new
supervision are related to ICOs.

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This document defines ICOs as an unauthorized fundraising tool and may involve financial scams, according to Caixin.

Given the fact that every day numerous ICO scams emerge and even most legit
ICOs are basically vaporware it is no surprise that countries are acting against these practices.
Mainstream investors often have no idea in what they are investing and are likely
to lose their money in the process. Cracking down on the abuse of ICOs as an investment vehicle
with few regulations is a prudent decision that I completely support.

Even if cryptocurrencies may be the future, ICOs are rather a negative accompanying effect of the
emergence of the cryptocurrency scene.
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