People’s Bank of China issues warning against ICOs & cryptocurrency trading
China’s central bank has yet again cautioned investors against cryptocurrency trading risks and initial coin offerings (ICOs) with its latest notice. The Shanghai branch of the People’s Bank of China (PBoC) issued the notice to ‘‘remind’‘ investors to remain cautious and remain aware of the risks associated with cryptocurrency.
The Public Notice
In the notice published on Tuesday, PBoC said that the blanket ban imposed by the government on all ICOs was a success.
The notice stated, “[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 central bank also highlighted the fact that the prices of virtual currencies have skyrocketed, which has led to an increased number of risks that could disrupt the existing economic, financial and social order.
Despite such stringent measures from the authorities, the central bank admitted that domestic investors were still continuing their crypto trading activities on exchanges located offshore. Last month, 124 offshore trading platforms were on the central bank’s blacklist, leading to their individual IP addresses being blocked.
For now, the PBoC will continue to keep the servers of these 124 trading exchanges under close supervision. It further stated that it will ‘“closely monitor ICOs and its multiple variants, strengthen research and judgement, proactively fight and prevent concerns.”
The notice added that citizens should report ICO variants or operators for any “suspected illegal activity or illegal crimes”.
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