The Shanghai branch of the People's Bank of China, which is the country's central bank, has decided to issue a public notice to investors. In the notice, the bank urges investors to completely refrain from participating in initial coin offerings (ICOs) and once again emphasizes the increased risk of cryptocurrency trading.
The public notice reminds investors that there is significant risk associated with investing in ICOs and that they should avoid speculative trading in crypto assets and avoid any ICO issued by operators in other countries. In addition, the NBK strongly recommends that citizens report illegal cryptocurrency transactions or financial fraud related to crypto assets to government officials.
At the moment, about a year has passed since the Central Bank decided to ban all types of ICOs in the country and defined them as an illegal method of raising funds. In a warning issued yesterday, the Bank described the ban as a success, having achieved the desired results. The document notes that thanks to the decisive measures taken, it was possible to reduce internal transactions of crypto assets to 5%, compared to the level before the introduction of restrictions on cryptocurrency transactions. Thus, avoiding the effect of a bursting bubble and preventing financial losses for the country’s citizens against the backdrop of last year’s cryptocurrency collapse.
However, the bank admits that cryptoactivity continues abroad, despite the internal ban. More than 124 offshore platforms are still working with Chinese citizens, and authorities are interested in blocking these IP addresses.
The central bank confirmed that it will continue to monitor all offshore servers of these platforms and look for ways to block their work without exposing Chinese investors to financial risks. The Bank does not intend to abandon its strict policy regarding ICOs and will closely monitor initial coin offerings and its various variants in order to block them in the country in a timely manner.
Many of the IT giants in the country have been subject to censorship, and have been forced to ban or block not only cryptocurrency transactions on their platforms, but also online forums for discussing crypto industry news.
China was once one of the leaders in crypto trading in the world, now after the ban on cryptocurrency activities and investments, the last cryptocurrency platforms are leaving the country.. Baidu, Tencent and Alibaba have had to rethink their cryptocurrency policies in order to remain in the Chinese market.
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