More and more Chinese ICO projects are seeking fundraising overseas as prohibitive regulations over bitcoin and ICOs tightens. To bypass strict surveillance, these ICO projects have rejected direct private funding from Chinese individual investors, and turned to offshore foundations for fundraising, as reported by 21st Century Business Herald, a Chinese business news outlet.
“Offshore funds from Chinese investors are targeted, especially those who have tasted the sweetness in previous lucrative ICO investment. These Chinese investors are glad to be the bottom fisher taking advantage of the current sluggish market and buying in quotas of high-quality ICO projects at low prices”, according to an insider close to the business.
But they have to keep their identity hidden for the country’s escalated clampdown on ICOs. These sophisticated businessmen continue their ICOs investing with the help of offshore foundations in Cayman Islands or Seychelles, as the operating mode of offshore foundations registered there could precisely meet their privacy requirement.
“Some Chinese billionaires even straightforwardly set up offshore private company in the Cayman Islands, pouring funding into it, and have it managed by seasoned ICO investment professionals, with the aim of being the next Alibaba / Tencent (blockchain giant).”
“Every week has been seeing Chinese blockchain projects do ICO (Initial Coin Offering) roadshow here in Silicon Valley since this year,” a Silicon Valley-based venture capitalist said, “they are mainly aiming at Chinese investors’ offshore funds which are out of government reach. A plurality of Chinese VC have also participated in this ICO game.”
http://news.8btc.com/chinese-icos-in-cayman-seeks-overseas-fundraising-new-chance-or-new-trap
