The People’s Bank of China (PBoC), the country’s central bank, has issued a public notice urging investors of risks in cryptocurrency trading and initial coin offerings (ICOs).
The Shanghai branch of the PBoC issued a public notice on Tuesday to “remind” consumers and investors to increase their risk awareness of ICOs – a radical form of fundraising powered by cryptocurrencies, urging investors to avoid speculative trading in cryptocurrencies and steer away from overseas operators issuing ICOs.
It’s been a year since the PBoC issued a blanket ban on all ICOs, outlawing it as an illegal practice of fundraising.
In its notice today, the central bank heralded the ban as a success, stating:
“[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 impact has been highly recognized by the community.”
...
read more: https://www.ccn.com/china-central-bank-warns-of-cryptocurrency-ico-risks/
The Shanghai branch of the PBoC issued a public notice on Tuesday to “remind” consumers and investors to increase their risk awareness of ICOs – a radical form of fundraising powered by cryptocurrencies, urging investors to avoid speculative trading in cryptocurrencies and steer away from overseas operators issuing ICOs.
It’s been a year since the PBoC issued a blanket ban on all ICOs, outlawing it as an illegal practice of fundraising.
In its notice today, the central bank heralded the ban as a success, stating:
“[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 impact has been highly recognized by the community.”
...
read more: https://www.ccn.com/china-central-bank-warns-of-cryptocurrency-ico-risks/
I don't agree with their ban at all. Even if something is extremely risky, people should have the right to invest in it.
But I guess they're trying to prevent flight of capital from their country as well, as cryptos in general including ICOs are essentially hindering this process. And with their historically negative attitude towards bitcoin and other cryptos, it's no surprise honestly that this is their policy. Also, they're making the bear market seem like some sort of crypto apocalypse which it really is not. It's completely normal, and you really think that Chinese investors would have avoided that just because of the ban on ICOs?
Their warnings are, however, somewhat true. The ICO space is extremely saturated, and there are tons of projects that are complete crap and even fake in some cases and people still are putting money into them.
