Crackdown Continues: Chinese Authorities Issue Joint Warning on ‘Illegal’ Crypto

entrepmind23

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Quote from: magneto on September 10, 2018, 04:55:47 AM

I'd have to agree with the Chinese government over this warning.

If you take a look at the scam accusation board, you'll quickly find that there are a ton of scam ICOs with completely fabricated teams. In fact, I'd regard most ICOs to be shady or scams even if their teams are not necessarily fake, simply because their intentions are well documented to be not to actually innovate technology by any means, but to raise as much money for themselves as possible.

I do agree with the Chinese government when it comes to crackdown because there are so many scam ICOs out there. Scammers are taking advantage of the fact that there are no applicable regulations yet when it comes to implementing those ICOs so they are creating tokens out of thin air and hire some people who would create a website and a whitepaper for them. We are just lucky somehow that we have a community who would warn investors.

Quote from: magneto on September 10, 2018, 04:55:47 AM

Perhaps regulation over the space would be nice to see instead of an outright ban, but this is definitely a deserved warning. They're not wrong about how ICOs are mostly fraudulent and using blockchain as an excuse to raise money whatsoever.

We can somehow reduce or totally eliminate the scammers if there are regulations because we will know the people behind those projects and they would be traceable. There are still legit ICOs out there who has brilliant ideas and would be a big help for the people to have ease of transactions.

magneto

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Quote from: oksgvardukraine2018 on August 24, 2018, 07:37:18 AM

Crackdown Continues: Chinese Authorities Issue Joint Warning on ‘Illegal’ Crypto Fundraising
Chinese regulators including the central bank have issued a new joint statement condemning illegal fundraising by schemes purporting to affiliate with cryptocurrency and blockchain technology.

Issued on Friday, the warning comes as a joint statement from the People’s Bank of China – the country’s central bank, the Ministry of Public Security, the Banking Regulatory Commission, the General Administration of Market Supervision and the Central Network Information Office.

The six major government bodies and watchdogs blasted “lawless elements” claiming to issue cryptocurrency through initial coin offerings (ICOs) while soliciting funds from investors. These operators use terms like “financial innovation” and “blockchain”, the warning read, accusing them of only purporting to be based on blockchain technology while they’re really elements of “illegal fundraising, pyramid schemes and fraud.”
https://www.ccn.com/crackdown-continues-chinese-authorities-issue-joint-warning-on-illegal-crypto-fundraising/

I'd have to agree with the Chinese government over this warning.

If you take a look at the scam accusation board, you'll quickly find that there are a ton of scam ICOs with completely fabricated teams. In fact, I'd regard most ICOs to be shady or scams even if their teams are not necessarily fake, simply because their intentions are well documented to be not to actually innovate technology by any means, but to raise as much money for themselves as possible.

Perhaps regulation over the space would be nice to see instead of an outright ban, but this is definitely a deserved warning. They're not wrong about how ICOs are mostly fraudulent and using blockchain as an excuse to raise money whatsoever.

gentlemand

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Quote from: Harlot on August 30, 2018, 10:41:54 AM

what they did is they equal to considering all ICOs as a scam.

They basically are, are they not?

All you're buying is a lump of code with the hope of selling it to someone else for more than you paid for it. You don't get any ownership of a company. You don't get any revenue. You get no guarantee anything you put money into will be worth anything in future. They are in effect lottery tickets or betting slips.

Harlot

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The problem here is there solution is broken, banning all kinds of ICO sales because there are some illegal fundraising scheme that turns out to be a scam is really not acceptable for the eyes of the citizens, if they know there are scam ICOs they must prevent only the fake ones on going in the market, what they did is they equal to considering all ICOs as a scam. The legislative department of their country must take action for their wrong memorandums before it takes a hit on their economy.

audaciousbeing

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Quote from: oksgvardukraine2018 on August 24, 2018, 07:37:18 AM

Crackdown Continues: Chinese Authorities Issue Joint Warning on ‘Illegal’ Crypto Fundraising
Chinese regulators including the central bank have issued a new joint statement condemning illegal fundraising by schemes purporting to affiliate with cryptocurrency and blockchain technology.

Issued on Friday, the warning comes as a joint statement from the People’s Bank of China – the country’s central bank, the Ministry of Public Security, the Banking Regulatory Commission, the General Administration of Market Supervision and the Central Network Information Office.

The six major government bodies and watchdogs blasted “lawless elements” claiming to issue cryptocurrency through initial coin offerings (ICOs) while soliciting funds from investors. These operators use terms like “financial innovation” and “blockchain”, the warning read, accusing them of only purporting to be based on blockchain technology while they’re really elements of “illegal fundraising, pyramid schemes and fraud.”
https://www.ccn.com/crackdown-continues-chinese-authorities-issue-joint-warning-on-illegal-crypto-fundraising/

Unfortunately, I have to agree with the statement they make because its true and at the same time reinstate my statement that they can only slow down use and penetration of the crypto industry activities but they won't be able to stop it. Because with all of the warnings, bans, crackdown, jail term, tracking of activities, they won't still be able to stop it. The concern is about those who are using these loopholes to rip people off their hard earned wealth and how they are being deceived and fooled in parting away with such resources.

In my opinion, I think the government and its agencies should stop focusing on the culprits after the deed has been done but more should be on the victims that are being deceived. The perpetrators knows how to operate under the radar, how to use VPNs to evade IP ban, how to set-up their base abroad away from the reach of the local enforcers then use social platforms groups to raise funds. Efforts should be geared towards real enlightenment of their citizens as most of these scams are easy to spot with just basic knowledge of how the crypto market works.

jseverson

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Quote from: oksgvardukraine2018 on August 24, 2018, 07:37:18 AM

The six major government bodies and watchdogs blasted “lawless elements” claiming to issue cryptocurrency through initial coin offerings (ICOs) while soliciting funds from investors. These operators use terms like “financial innovation” and “blockchain”, the warning read, accusing them of only purporting to be based on blockchain technology while they’re really elements of “illegal fundraising, pyramid schemes and fraud.”
https://www.ccn.com/crackdown-continues-chinese-authorities-issue-joint-warning-on-illegal-crypto-fundraising/

Well they're not exactly wrong. People have been setting up ICOs for everything, even for projects that don't really belong on the blockchain. Most aren't really selling their projects, they're selling what their projects could be worth. That's pretty close to fraud in my opinion, and it's definitely illegal fundraising because it's banned.

Quote from: timerland on August 30, 2018, 05:47:36 AM

Not surprising that they're issuing this warning, but most of the investing has probably moved offshore anyways.

What's funny is that's exactly what they're trying to prevent -- capital flight.

Theb

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This is really not avoidable for ICO developers they know China is a big market that they can target, with a lot of business minded citizens as well as young willing investors not promoting your ICO sale locally in China is a wasted opportunity for them. I think what is best for the government and their country is rather than stopping these sales and promotions locally I think the only way to exploit this is having a proper and well regulated cryptocurrency market, not what everyone wanted to have but this is the only solution for both parties to work, also having a monitored market will mean that there would be less criminal activities like money laundering and tax evasion which the Chinese government is mainly preventing to happen.

timerland

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So basically, they're now trying to enforce their ban on ICOs more harshly.

That's essentially what is "illegal crypto crowdfunding". The hundreds of ICOs that are on display each day to attract investors. To be honest, even though this sounds like some ridiculous thing, but most of them are probably illegal, as most have fake teams and will end up as scams sooner or later.

But with China's attitude towards crypto, they certainly do not seem to be backing off any time soon and are going to continue with their policy of pretty much getting rid of all foreign influence when it comes to crypto. Not surprising that they're issuing this warning, but most of the investing has probably moved offshore anyways.

ahmadimtiaj

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They have right to take any decisions for their peoples but not for the world. So be happy & watch.

ahmadimtiaj

newbie

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You maybe right. But time will say what to do or not to do. When the bitcoin price will be hike none can stop them, I think so.

sheenshane

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Quote from: Taki on August 29, 2018, 05:22:01 PM

Quote from: avikz on August 29, 2018, 04:51:18 PM

China was never friendly to cryptos and they were the first country to ban ICOs. Still chinese people were trying new methods to continue with thus activity which could have resulted the recent warning! Chinese government is no less than north Korea but just the news don't fly out to the market.

Sadly if communism at this scale is banning people from achieving their financial independence by forcing them to stick with the government provided ration. That should be abolished for the betterment of the nation.

Do you think the government of China is trying to make the life of its citizens worse? I think they just see more disadvantages in crypto than advantages and try to protect their people from loosing of big sums of money. Do not judge the political course of the country in that. China is one of the world's largest economy and I believe they know what they do. The true fact from this story is this news will not affect on crypto market positively.

China is not friendly on crypto I think maybe they know that their citizens may take advantage since bitcoin is may used on illegal activities that's probably the reason of refusing bitcoin and other cryptos. They may be trying to protect their people for the possible fraudulent happen on cryptocurrencies and the blockchain technology.
Well, we can't blame them each country has a different perspective on cryptocurrencies, luckily not all country like in China.

gentlemand

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Welt Am Draht

Quote from: Taki on August 29, 2018, 05:22:01 PM

Do you think the government of China is trying to make the life of its citizens worse?

In this particular case, not particularly.

In general, of fucking course.

It's nothing to do with the well being of actual humans. It's all to do with increasing their control over their own citizens. Read up on the social credit system and tell me that's not an absolute nightmare in the making - https://www.wired.co.uk/article/china-social-credit

Taki

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Quote from: avikz on August 29, 2018, 04:51:18 PM

China was never friendly to cryptos and they were the first country to ban ICOs. Still chinese people were trying new methods to continue with thus activity which could have resulted the recent warning! Chinese government is no less than north Korea but just the news don't fly out to the market.

Sadly if communism at this scale is banning people from achieving their financial independence by forcing them to stick with the government provided ration. That should be abolished for the betterment of the nation.

Do you think the government of China is trying to make the life of its citizens worse? I think they just see more disadvantages in crypto than advantages and try to protect their people from loosing of big sums of money. Do not judge the political course of the country in that. China is one of the world's largest economy and I believe they know what they do. The true fact from this story is this news will not affect on crypto market positively.

avikz

legendary

Activity: 3080

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China was never friendly to cryptos and they were the first country to ban ICOs. Still chinese people were trying new methods to continue with thus activity which could have resulted the recent warning! Chinese government is no less than north Korea but just the news don't fly out to the market.

Sadly if communism at this scale is banning people from achieving their financial independence by forcing them to stick with the government provided ration. That should be abolished for the betterment of the nation.

oksgvardukraine2018

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Crackdown Continues: Chinese Authorities Issue Joint Warning on ‘Illegal’ Crypto Fundraising
Chinese regulators including the central bank have issued a new joint statement condemning illegal fundraising by schemes purporting to affiliate with cryptocurrency and blockchain technology.

Issued on Friday, the warning comes as a joint statement from the People’s Bank of China – the country’s central bank, the Ministry of Public Security, the Banking Regulatory Commission, the General Administration of Market Supervision and the Central Network Information Office.

The six major government bodies and watchdogs blasted “lawless elements” claiming to issue cryptocurrency through initial coin offerings (ICOs) while soliciting funds from investors. These operators use terms like “financial innovation” and “blockchain”, the warning read, accusing them of only purporting to be based on blockchain technology while they’re really elements of “illegal fundraising, pyramid schemes and fraud.”
https://www.ccn.com/crackdown-continues-chinese-authorities-issue-joint-warning-on-illegal-crypto-fundraising/

Topic: Crackdown Continues: Chinese Authorities Issue Joint Warning on ‘Illegal’ Crypto (Read 201 times)