China's central bank says virtual currency fundraising is illegal
China's central bank issued a warning Friday about the legal risks of fund-raising money through cryptocurrencies. This is the latest move from China to classify the crowdfunding option as a scam.
As reported on Reuters, the People's Bank of China posted on their website that "those so-called 'financial innovation' activities" are deemed illegal. This is in reference to businesses raising capital through virtual currencies, such as an Initial Coin Offering (ICO).
The posting comes shortly after the Chinese government disabled eight blockchain and cryptocurrency news account on the popular WeChat social network. New regulations from China's top internet watchdog and Tencent made a statement regarding the accounts, stating they were shut down for publishing information related to ICOs and cryptocurrency trading. Beijing's central Chaoyang district banned blockchain events held in hotels, office buildings, and shopping malls.
Beijing is vocal in their disdain with virtual currency fundraising. The Chinese government made it clear they have no intent on lifting the cryptocurrency ban. The People's Bank of China informed citizens to be rational towards blockchain rather than blindly trust it.
Executive editor： JohnMinWu