Chinese banks banned the primary placement of cryptocurrency.
In China companies banned the ICO (Initial Coin Offering) – the initial placement of the cryptocurrency. The people’s Bank of China has recognized the location of token as illegal and has demanded to stop all the operations of the ICO.
The regulator stressed that the tokens cannot be used as currency, because they are not payment instruments and they have no legal status of money.
Also, the Central Bank of China forbade banks to provide services at the location of the ICO will be closed and platforms that provide similar services. The regulator also said that all money raised under the placing must be returned to the investors, but he did not specify exactly how this should be done.
ICO is a sale of digital tokens, which for the past year showed unhindered growth, rising to $1.6 billion, They are considered a threat to the stability of the financial market of China, because the authorities are trying to clean up the channels of financing that go beyond traditional banking system.
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