PBoC Highlights Crypto and ICO Risks Again
September 19, 2018
The People’s Bank of China has published a warning note to inform local investors against possible risks cryptocurrencies and ICOs may cause.
According to the released paper, the initial token offering financing model is illegal, unauthorized and implies social, financial and economic risks.
The Central Bank of China finds certain correlation between ICO and illegal token sales, unlawful securities emission, financial misdeeds, pyramids, scam and other kinds of financial crimes.
The institution has given positive assessment to the restrictive measures taken by the country’s authorities against ICO and noted that share of local crypto transactions has dropped from 90% to 5% which helped to avoid adverse effects of the 2017 crypto market growth and successive downfall.
Meanwhile the Bank stresses that it is too early to declare sweep victory over cryptocurrencies as there is a number of problems like huge trade volume at foreign crypto exchanges which is also being handled now.