Rumors: China is about to suspend ICOs

Tencent Finance’s sources in the government tell that Chinese officials responsible for financial regulation had a closed meeting. The representatives of the Securities and Futures Commission and the China Banking Regulatory Commission were present.

This insider of the outlet told that during this meeting on August 18, the regulators discussed the program that includes ICO size limit, closer observation of cryptocurrency and investment risks warning system. The regulators will even be able to suspend all ICOs if they deem this kind of operations too risky for the Chinese internal market.

There are also reports that the Chinese government plans to view cryptocurrency operations through the prism of the law that dates back to 1998. According to this law, the People’s Bank of China can identify fundraising that targets non-specific objects without legal approval as illegal. If this is applied to cryptocurrency market, the consequences can be dire both for miners and traders.