The People’s Bank of China (PBC), the country’s central bank, has issued another notice warning investors about the risks of currency trading and primary placements of tokens (ICO).
The Shanghai branch of the PBC issued a notice to “remind” consumers and investors about the risks to the ICO as a form of raising funds in crypto-currencies, urging investors to avoid speculative trading in crypto-currencies and to stay away from overseas issuers of the ICO.
A year has passed since the PBC issued a complete ban on holding the ICO, declaring it an illegal collection practice. In addition, in September last year, the regulator banned the crypto-currency trade, ordering all exchanges to immediately stop work.
In its latest statement, the central bank also stressed that local residents should report about ICO emitters or any other persons involved in fund-raising under “alleged illegal activities or crimes”.
Before the ban was introduced last year, China was the largest crypto-currency market in the world. In this regard, Chinese citizens were not inclined to comply with government bans and did not accept the blockchain of the crypto-currency industry. Recently it became known that the Chinese circumvent government bans on operations with crypto-currencies with the help of USDT and VPN.
At the same time, Chinese companies, under pressure from the authorities, are still trying to restrict access to digital assets. The popular Chinese messaging application WeChat blocks official accounts related to crypto-currencies, and at the end of last month Baidu Tieba, the Chinese counterpart of Reddit, began blocking sub-forums related to crypto-currencies.
At the same time, the government continues its attempts to fight the industry at the state level. In August, the Guangzhou authorities issued a notice banning the conduct of crypto-currency activities in the region. In addition, at the end of summer, Chinese regulators issued a warning about the illegality of fund-raising in crypto-currencies, and a week before that they announced their intention to close access to 124 foreign exchanges for crypto-currencies.
In the spring of this year, the Chinese authorities began blocking accounts of foreign crypto-exchange exchanges in social networks. At the same time, regulators announced their intention to block IP addresses of foreign crypto-exchange exchanges. The attention of the authorities was attracted by the fact that the exchanges sell ICO tokens, thus neglecting the ban on the offer of ICO to Chinese investors.