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China to ban ICOs

03 September 2017 21:00, UTC

The People’s Bank of China has declared: the initial coin offerings or ICOs are illegal. All ICOs in the country must be ceased immediately. The state financial regulator threatened to punish every company that plans to hold such offerings in the future and even those who already held an initial coin offering will be prosecuted and charged with fees. This directly contradicts the principle that no law can have a retroactive effect.

This organization also made clear that tokens are not payment tools given by legal credit companies. For the Chinese authorities, they no longer have any “legal or monetary properties” and banned for use as a currency. All banks in the country will not be able to provide ICO services ever again.

And there’s more: the People’s Bank of China, in cooperation with communications regulative governmental bodies, will now close all cryptocurrency trading platforms and digital currency mobile apps in their way.

Lastly, the bank told that all citizens of China must be well-informed about cryptocurrency risks and immediately provide all illicit activities information to the authorities.

Turns out the rumors told by the anonymous insider in the Chinese government were completely true: the country chose to restrict access to cryptocurrency operations and ICOs in particular.