[2018-09-18] China Central Bank Warns of Cryptocurrency, ICO Risks in Public Not

[manyexp]

The People’s Bank of China (PBoC), the country’s central bank, has issued a public notice urging investors of risks in cryptocurrency trading and initial coin offerings (ICOs).

The Shanghai branch of the PBoC issued a public notice on Tuesday to “remind” consumers and investors to increase their risk awareness of ICOs – a radical form of fundraising powered by cryptocurrencies, urging investors to avoid speculative trading in cryptocurrencies and steer away from overseas operators issuing ICOs.

It’s been a year since the PBoC issued a blanket ban on all ICOs, outlawing it as an illegal practice of fundraising.

In its notice today, the central bank heralded the ban as a success, stating:

“[T]he global share of domestic virtual currency transactions has dropped from the initial 90% to less than 5%, effectively avoiding the virtual currency bubble caused by skyrocketing global virtual currency prices in the second half of last year in China’s financial market. The impact has been highly recognized by the community.”

...

read more: https://www.ccn.com/china-central-bank-warns-of-cryptocurrency-ico-risks/

[terrific]

Not new, they have been warning their people since last year.
And I'm not sure if they really banned ICO on their which gave an impact to the market.
But this news clearly tells that its there's no more ban.

[rodskee]

China bank release these news to warns against the risk of cryptocurrency icos investing
No surpise on that news because cryptocurrency is threat for the bank financial stability

[audaciousbeing]

The People’s Bank of China (PBoC), the country’s central bank, has issued a public notice urging investors of risks in cryptocurrency trading and initial coin offerings (ICOs).

The Shanghai branch of the PBoC issued a public notice on Tuesday to “remind” consumers and investors to increase their risk awareness of ICOs – a radical form of fundraising powered by cryptocurrencies, urging investors to avoid speculative trading in cryptocurrencies and steer away from overseas operators issuing ICOs.

It’s been a year since the PBoC issued a blanket ban on all ICOs, outlawing it as an illegal practice of fundraising.

In its notice today, the central bank heralded the ban as a success, stating:

“[T]he global share of domestic virtual currency transactions has dropped from the initial 90% to less than 5%, effectively avoiding the virtual currency bubble caused by skyrocketing global virtual currency prices in the second half of last year in China’s financial market. The impact has been highly recognized by the community.”

...

read more: https://www.ccn.com/china-central-bank-warns-of-cryptocurrency-ico-risks/

This is the most confusing statement I am seeing in recent time. It shows two things contradictions and over bloating.

1. Contradictions. How cannyoi claim this your policy has recorded high success rate and the same time you are reminding the users not to invest which points to the direction that, compliance is forced as a the reminder is sending a message that "we are still on the lookout for anyone who flout the provisions of the ban that was rolled out last year" nothing else. If it has been successful and the message has been received, there is no point to remind them.

2. Over bloating of success. Concluding that there is a drop from 90% to 5% within one year showed some exaggerated accomplishments and yet you are losing sleep over the remaining 5% that you felt the "reminder" is really necessary for emphasis purpose.

[Kemarit]

Not new, they have been warning their people since last year.
And I'm not sure if they really banned ICO on their which gave an impact to the market.
But this news clearly tells that its there's no more ban.

Probably it really bring a lot of impact on the market when they make a sudden U-turn last year. It was not felt because at that time, the market was really in a massive bull run, but I believed that if there's no good news to offset what they did, the bear season must have started much earlier but we all know what already transpired in the last quarter of the year. Yes, no surprises here because they wanted to stop the revolution so they will kept on running their mouths issuing government warnings all throughout China. The only problem is that media keeps sensationalizing it when everyone knows that they no longer has the influence on the market. PBoC really knows that Chinese are still investing, hence this warning again.

[Harlot]

What is new with this news? From what I know it is also part of their job on warning people on this kinds o investment risks. I have seen news from other countries' central bank doing the same thing, warning their citizens on the risk of investing in ICOs, others even warn them on trying to invest in crypto related HYIP sites. This is good as instead of them prohibiting their citizens a good warning for them is really what they needed. Also these kinds of news shows that cryptocurrency is not illegal in China that kind of belief should be a myth by now.

[bbc.reporter]

This is what I want to know. Are the ICOs and the whole cryptospace banned in China or not? Did the PBOC not already ban all exchanges, all kinds of cryptocoins from circulating, ICOs included? Didn't the Chinese government also start banning miners in their country?

Then why does the bitcoin news media still give significance to what China has to say about the cryptospace? Readers should ignore them.

[hugeblack]

Then why does the bitcoin news media still give significance to what China has to say about the cryptospace? Readers should ignore them.

It's not about China, India or Russia, but the sources of that news. ccn.com and other sites re-post or falsify a lot of stories to manipulate the price.
We all know that news plays a vital role in investors' emotions and therefore in their decisions, so investors often look for the press to see the direction of the market.
These sites publish news consistent with the direction of the market if it bumps, re-post positive news and vice versa.
There is also a distortion of some news, such as what happened to the rise of Bitcoin in Iran.

[Slow death]

Why are they still publishing news from China? China has a very dark political regime, they would not accept something decentralized as bitcoin and their opinion should not be taken seriously when everyone knows they have a very somber political regime. I believe that the Chinese government wants to spread its poison to everything world, but fortunately there are countries that do not follow the same path as the Chinese government. For our news channels, I advise you to ignore the views of the Chinese government

the sources of that news. ccn.com and other sites re-post or falsify a lot of stories

I agree

Then why does the bitcoin news media still give significance to what China has to say about the cryptospace? Readers should ignore them.

I agree and if it was 1 year ago this news would make the price drop a lot

[bbc.reporter]

Then why does the bitcoin news media still give significance to what China has to say about the cryptospace? Readers should ignore them.

It's not about China, India or Russia, but the sources of that news. ccn.com and other sites re-post or falsify a lot of stories to manipulate the price.
We all know that news plays a vital role in investors' emotions and therefore in their decisions, so investors often look for the press to see the direction of the market.
These sites publish news consistent with the direction of the market if it bumps, re-post positive news and vice versa.
There is also a distortion of some news, such as what happened to the rise of Bitcoin in Iran.

Agreed and there I said readers should ignore them.

The bitcoin news media might be running out of new material to report. They are resorting to FUD and clickbait to keep us entertained hehe.

[timerland]

The People’s Bank of China (PBoC), the country’s central bank, has issued a public notice urging investors of risks in cryptocurrency trading and initial coin offerings (ICOs).

The Shanghai branch of the PBoC issued a public notice on Tuesday to “remind” consumers and investors to increase their risk awareness of ICOs – a radical form of fundraising powered by cryptocurrencies, urging investors to avoid speculative trading in cryptocurrencies and steer away from overseas operators issuing ICOs.

It’s been a year since the PBoC issued a blanket ban on all ICOs, outlawing it as an illegal practice of fundraising.

In its notice today, the central bank heralded the ban as a success, stating:

“[T]he global share of domestic virtual currency transactions has dropped from the initial 90% to less than 5%, effectively avoiding the virtual currency bubble caused by skyrocketing global virtual currency prices in the second half of last year in China’s financial market. The impact has been highly recognized by the community.”

...

read more: https://www.ccn.com/china-central-bank-warns-of-cryptocurrency-ico-risks/

I don't agree with their ban at all. Even if something is extremely risky, people should have the right to invest in it.

But I guess they're trying to prevent flight of capital from their country as well, as cryptos in general including ICOs are essentially hindering this process. And with their historically negative attitude towards bitcoin and other cryptos, it's no surprise honestly that this is their policy. Also, they're making the bear market seem like some sort of crypto apocalypse which it really is not. It's completely normal, and you really think that Chinese investors would have avoided that just because of the ban on ICOs?

Their warnings are, however, somewhat true. The ICO space is extremely saturated, and there are tons of projects that are complete crap and even fake in some cases and people still are putting money into them.