Beijing calls attention to new fundraising models in crypto market

Posted 27 August, 2018

China's authorities reportedly gave a warning about illegal fundraising along with blockchain-based and crypto trading.

According to the news reports, the warning message was sent last Friday by six key regulators, including PBOC, Banking Regulatory Commission, the Ministry of Public Security, the Central Cyberspace Affairs Commission, and the State Administration for Market Regulation.

The regulators also mentioned companies with foreign IP-addresses, that lure China-based clients as well as different mobile and payment solutions available on the internet that can be used for crypto trading.

As the official statement reads, the above-mentioned projects apply different bonuses for boosting popularity and attractiveness for the potential investors in China, though they actually manipulate prices for illegal profit. 

"Some individuals claim in chat groups on messaging applications that they are able to invest in overseas crypto projects on behalf of domestic investors as a broker. ... These claims are highly likely to be fraudulent," said regulators.

In addition, it was also paid attention to the organizations that apply new ways of fundraising, like initial exchange offering, initial fork offering and initial miner offering, which definitely differs from ICO. As a result, the authorities believe investors should be careful with such companies.

As it was reported earlier, Chinese authorities closed access to about 100 foreign exchanges in China.

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27 August, 2018 18:01

← Chinese search giant Baidu to filter and ban crypto forum threads

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27 August, 2018 13:55

Mt Gox launches filing system for civil rehabilitation claims →

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