Chinese State Media Accuses ICOs and Exchanges of Defying Crackdown

Chinese state media outlet, Voice of China, has published reports criticizing the efforts of Chinese cryptocurrency exchanges and initial coin offerings (ICOs) to continue operations in spite of the central government's 2017 crackdown.

State Media Criticizes Cryptocurrency Exchanges’ Defiance of Crackdown

One of the reports states that despite the official ban, companies operating in the cryptocurrency sector sought 'to take advantage of the rising tide of rising bitcoin prices,” and alleges that many of China's cryptocurrency exchange 'platforms immediately set up overseas websites and continue to provide digital currency services to mainland users as overseas companies.'

Voice of China Targets Okex

The report states that 'After the national ban was issued, OKCoin transferred all user data and digital currency to the OKEx Exchange, which was established outside China.' Voice of China also quote an Okex customer who believes that the company 'is only nominally moving the company overseas, claiming to be headquartered in Belize, and the team is Hong Kong, but in fact, still operates the entire company in Beijing, and the users are almost all Chinese.'

State Media Claims Number of Chinese ICOs Increasing Despite Ban

The report states that the September document issued by various Chinese government institutions declared the 'issuance of tokens is essentially an unauthorized and illegal public financing.' The document accused many ICOs of violating financial laws through 'illegally issuing tokens, [the] illegal distribution of securities, and illegal fundraising,' in addition to 'Financial fraud, pyramid schemes and other illegal and criminal activities.'

Professor Criticizes 'One Size Fits All' Cryptocurrency Regulations

According to a rough translation, Deng Jianpeng stated: 'digital currency has a very typical global character, resulting in a simple prohibition of no effect in the physical space. Therefore, if we think about fine-tuning the regulatory rules, it is absolutely not allowed to do public offerings. Fraud is absolutely necessary to crack down on criminal law, but if it is private equity is also true entrepreneurship. Is it possible to have some special channels, such as approval by a specific agency, to avoid the embarrassing situation of supervision' This thing is worth rethinking.'

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The post Chinese State Media Accuses ICOs and Exchanges of Defying Crackdown appeared first on Bitcoin News.


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