China bans cryptocurrency offerings while Bitcoin surges

Cryptocurrency is the China’s new target on its hit list. It announced on Monday, that the People’s Bank of China banned ICOs, the series of investigations on raising funds by launching new digital tokens. But, there was no particular cryptocurrencies were mention as Bitcoin or Ethereum.

ICO (Initial Coin Offerings)

The escalating cryptocurrencies market has rapidly growing that initial Bitcoin was worth more than a troy of gold in March. It has seen digital currency entrepreneurs gathering to ICOs to generate and sell digital tokens to investors.

Constantly, regulators are considering to ICOs. Practically, Bloomberg said netted $1.6 billion in last year. It has prompted security concerns from the Exchange Commission and US Securities. The commission releases advisors in August and July some of ICOs should be regulates like other securities. The risk of warning that comes with investing in ICOs along with scams.

Related Coverage: Companies Cancel Sales Awaiting Legislation as China halts 60 ICOs

The People’s Bank of China said in a statement that, ICOs are a form of “illegal public financing and unauthorized”. Additionally, ICOS have “financial order and seriously disrupted” in China.

The People’s Bank says china has banned all currency conversions and sales involving digital tokens. And also prohibited all financial institutions and non-bank payment organizations from offering any services to ICOs.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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